Question

How much would she get back wher 2 years
Lehmi deposited 25000 rupees in a bank which gives stowwe
First year's balance
Rate of interest
Interest for the first
- 8% of first year's balance
25000x
100
Second year's balance
First year's balance +Interest for the first year
= 25000 +
Interest for the second year
= 8% of Second year's balance
Amount Lekshmi got after two years
= Second year's balance
+ Interest for the second year​

Answer 1

Step-by-step explanation:

In simple interest, interest charge on investment or principal money.

In Compound Interest, Interest charge on principal + Accumulated Interest.

Balance after completing 1 years=Balance in the starting + interest after 1 years

For calculating Interest =

First Year’s balance= 25000Rs

First Year’ Interest =

= 2000

Now, balance after the first year= First Year’s balance +First Year’s Interest

= 25000+2000

= 27000Rs

Second Year’s Balance= 27000Rs

Second Year’s Interest=

= 2160Rs

Balance after the second year = Second Year’s Balance + Second Year’s Interest

= 27000+2160

= 29160Rs