A sum becomes Rs.1352 in 2 years at 4% per annum compound interest. The sum is = ?

Answer: Option D

Let the sum be Rs. x
$$\begin{array}{rl}& \therefore 1352=x{\left(1+\frac{4}{100}\right)}^2\\ & \Rightarrow 1352=x{\left(1+\frac{1}{25}\right)}^2\\ & \Rightarrow 1352=x{\left(\frac{26}{25}\right)}^2\\ & \Rightarrow x=\frac{1352\times 25\times 25}{26\times 26}\\ & \Rightarrow x=\text{Rs}\text{.}1250\end{array}$$