Question

· Prem has deposited some money in a bank at 4% per
annum. The bank increases the interest rate by 1%
p.a. and Prem deposits an additional 3000 in his
account. The annual interest he receives at the year
end is * 220 more that what he would have received
if the bank had not increased the interest rate and
he had not deposited additional amount. Find the
original deposit .

Please answer correctly. ​

Answer 1

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P (1+ i/n)nt

P = Principal invested.

i = Nominal Rate of Interest.

n = Compounding Frequency or number of compounding periods in a year.

t = Time, meaning the length of time the interest is applicable, generally in years.