Q.Let the interest rate be \( r\% \). \(\therefore\) According to the question, \[ 5000\left(1+\cfrac{r}{100}\right)^2 = 5408 \] \[ \left(1+\cfrac{r}{100}\right)^2 = \cfrac{5408}{5000} = \cfrac{676}{625} \] \[ \left(1+\cfrac{r}{100}\right)^2 = \left(\cfrac{26}{25}\right)^2 \] \[ 1+\cfrac{r}{100} = \cfrac{26}{25} \] \[ \cfrac{r}{100} = \cfrac{26}{25} - 1 = \cfrac{1}{25} \] \[ r = \cfrac{100}{25} = 4 \] \(\therefore\) The interest rate is \( 4\% \).

Let B's capital be \( x \) rupees. âˆī If A's profit is 1500 rupees, then B's profit \[ = (2500 - 1500) \text{ rupees} = 1000 \text{ rupees} \] According to the question, \[ 1800:x = 1500:1000 \] \[ \cfrac{1800}{x} = \cfrac{1500}{1000} \] \[ 1500x = 1800 \times 1000 \] \[ x = \cfrac{1800 \times 1000}{1500} = 1200 \] âˆī B's capital is 1200 rupees (Answer).
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