The simple interest after 2 years=1500. Thus the simple interest in 1 year=750. Let's assume that the amount is being compounded yearly, the compound interest at the end of 1 year will be Rs 750. In the second year, the interest earned= 1575-750= 825. Difference between the interest in first year and second year= 825-750= 75. This is the interest that you earned on the interest of 750(after 1 year). Therefore, Rs 75 on an amount of 750. Interest%= (75/750) *100% = 10% Ans
