SOLUTION :
Here $A=$ Rs. 3125
$\begin{aligned} P &=\text { Rs. } 2000 \\ t &=2 \text { years, } R=? \end{aligned}$
Then, $\left(1+\frac{R}{100}\right)^{t}=\frac{A}{P}$
$\Rightarrow\left(1+\frac{R}{100}\right)^{2}=\frac{3125}{2000}=\frac{625}{400}$
$=\left(\frac{25}{20}\right)^{2}$
$\Rightarrow 1+\frac{R}{100}=\frac{25}{20}$
$\Rightarrow \frac{R}{100}=\frac{25}{20}-1=\frac{5}{20}$
$\therefore R=\frac{5}{20} \times 100$
$=25 \% ;$ Ans.
Therefore, The Rate is 25%.
