Question

Shikha deposited 2000 in a bank which pays 6% simple interest. She withdrew 700 at the end of first year . What will be her balance after 3 years ?

Answer 1

Principal amount deposited (P) = Rs. 2000

Time period (T) = 1 year

Rate of interest (R) = 6 % p.a.

Interest after 1 year = $\frac{PRT}{100}=\frac{2000\times 6\times 1}{100}=Rs.120$

So, amount after 1 year = Principal amount + Interest = 2000+120=Rs. 2120

After 1 year, amount withdrawn = Rs. 700

Principal amount left (P1) = Rs. 2120 - Rs. 700 = Rs. 1420

Time period (T) = 2 years

Rate of interest (R) = 6 % p.a.

Interest after 2 years = $\frac{PRT}{100}=Rs.170.40$

Total amount after 3 years = Rs. 1420 + Rs. 170.40 = Rs. 1590.40