Nirmala deposited Rs. 20,000 in a bank where compound interest of rate

1.	Nirmala deposited Rs. 20,000 in a bank where compound interest of rate 7% is computed annually Rs. 5000 was with drawn after one year. How much amount she will get after 2 years.
Answer» Amount deposited in the bank = Rs. 2000 Rate of interest = 7% principal after one year = 20000 + [20000 × \(\frac{7}{100}\)] = 20000 + 1400 = 21400 Amount withdrawn after one year = Rs. 5000 . Principal for the 2^nd year = 21400 – 5000 = Rs. 16400 Amount she gets after 2 years = 16400 + [16400 × \(\frac{7}{100}\)] = 16400 + 1148 = Rs. 17548

Nirmala deposited Rs. 20,000 in a bank where compound interest of rate 7% is computed annually Rs. 5000 was with drawn after one year. How much amount she will get after 2 years.

Answer»

Amount deposited in the bank = Rs. 2000

Rate of interest = 7%

principal after one year

= 20000 + [20000 × \(\frac{7}{100}\)] = 20000 + 1400 = 21400

Amount withdrawn after one year = Rs. 5000 .

Principal for the 2^nd year

= 21400 – 5000 = Rs. 16400

Amount she gets after 2 years

= 16400 + [16400 × \(\frac{7}{100}\)] = 16400 + 1148

= Rs. 17548