Question

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

Please solve

Answer 1

Rate of interest is given as 6% and Principle amount as Rs2000
Interest after 1 year= P*R*T/100 = 2000*6*1/100 = Rs 120
Net amount at the end of first year= Principle+ interest-Amount withdrawn=2000+120-700= Rs 1420
For the next 2 years, simple interest will be paid at the rate of 6% on the amount of Rs 1420 which is = 1420*6*2/100 =Rs 170.40
Balance after 3 years= 1420+170.40=Rs 1590.40