Question

Mr. Jhon deposited Rs. 5000 in a bank which pays 12% simple interest. He had taken out Rs. 1000 at the end of first year. What will be his balance after 5 years? ​

Answer 1

Amount at end for first year = 5000 + Intrest

Interest = P T R / 100
= 5000 x 12 x 1 / 100 = 600
Amount after withdrawals = 5000 + 600 - 1000
= 5600- 1000 = 4600 Rs

Amount after next 4 years (So total 5 years) = 4600 + Interest
Interest = 4600 * 12 * 4 yrs / 100
= 2208 Rs

Final amount = 4600Rs + 2208Rs = 6808Rs

Final answer = Rs 6808