A sum becomes Rs.7436 in two years when interest is compounded annually at the rate of 4% per annum. What was the sum?

Rs.7,075 Rs.6,275 Rs.6,575 Rs.6,875

Rs.6,875

Amount =  Principal × ( 1 + \(\frac{rate }{100}\) )t 7436 = Principal × ( 1 + \(\frac{4 }{100}\) )2 7436 = Principal  × \(\frac{26 }{25}\) × \(\frac{26 }{25}\) Principal = Rs. 6875