John deposited 4000 in the bank which pays 6% simple interest per annum. What amount will he receive after 3 years?
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Answer:
Principal amount deposited (P) = Rs 2000
Time period (T) = 1 year
Rate of interest (R) = 6% p.a.
Interest after 1 year =
100
P×R×T
=
100
2000×6×1
= 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After 1 year , amount withdrawn = Rs 700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 =
100
P×R×T
=
100
1420×6×2
= Rs 170.40
Total amount after 3 years = Rs 1420 + Rs 170.40 = Rs 1590.40
Step-by-step explanation:
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