Question

a man deposits Rs 870 in a post office saving bank account which allowed a 5 paisa interest on one rupee for a year . if there are no withdrawals during the year, find the man's credit balance at the end of the year.​

Answer 1

Answer:

Credit balance at the end of year = 913.5 Rs

Step-by-step explanation:

Given : Principle amount P = 870

            Interest  = 5 paisa/ one rupee = 5Rs/100 Rs = 5%

            Period T = 1 year

            Credit balance at the end of year = A = ?

Solution : Amount A = P x (1 + RT/100)

                                 = 870 x (1 + 5x1/100)

                                 = 870 x 1.05

                                 = 913.5 Rs

Credit balance at the end of year = 913.5 Rs