Explanation:

To find the amount on Rs 25,000 at a 20% interest rate compounded yearly for 4 years, we use the compound interest formula:

- Formula: A = P(1 + r/n)^(nt)

- Given:

- Principal (P) = Rs 25,000

- Rate of interest (r) = 20% or 0.20

- Time (t) = 4 years

- Compounded yearly (n=1)

Let's calculate:

1. Substituting the values: A = 25000 * (1 + 0.20)^4

2. Simplifying inside the parentheses: (1 + 0.20) = 1.20

3. Raising to the power of 4: 1.20^4 ˜ 2.0736

4. Multiplying by the principal: A = 25000 * 2.0736 ˜ Rs 51,840

- Comparison: The calculated amount is Rs 51,840.

- Option 1: Rs 51,840

- Option 2: Rs 50,350

- Option 3: Rs 53,550

- Option 4: Rs 48,750

Therefore, Option 1 (Rs 51,840) is the correct answer.