We have been given that Aladdin has 12 gold coins in his magic bag. The Genie tells him that for every 100 gold coins he has in his magic bag, he will get 25 extra gold coins every year.
First of all, we will find increment rate of gold coins by finding 25 is what percent of 100 as:
The increase in coins in one year would be 25% of 12 that is coins.
Now we will use proportions to solve our problem as:
Therefore, 7 years Aladdin will have 21 gold coins in his bag.