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Shikha deposited ₹2000 in a bank which pays 6% simple interest. She withdrew ₹ 700 at the end of the first year . What will be her balance after 3 years? My solution : P1 = ₹2000 R=6% T=1yr SI =( 2000*6*1)÷100 SI = (120) P2 = ₹2000-₹700 = ₹1300 SI = (1300*6*2)÷100 SI = 156 Amt = 1300+156+120 Amt = ₹1576 Other solution P1 = ₹2000 R=6% T=1yr SI =( 2000*6*1)÷100 SI = (120) Amt = 2000 + 120 =₹2120 P2 = 2120-700=1420 SI = (1420*6*2)÷100 SI = 170.4 Amt = 1420+170.4=1590.4 I am not able to understand why do we have to subtract ₹700 from initial amount ₹2000 . Shikha withdrew ₹700 at the end of the first year . ​​​​

Answer» Shikha deposited ₹2000 in a bank which pays 6% simple interest. She withdrew ₹ 700 at the end of the first year . What will be her balance after 3 years?

My solution :
P1 = ₹2000 R=6% T=1yr
SI =( 2000*6*1)÷100
SI = (120)

P2 = ₹2000-₹700 = ₹1300
SI = (1300*6*2)÷100
SI = 156

Amt = 1300+156+120
Amt = ₹1576

Other solution
P1 = ₹2000 R=6% T=1yr
SI =( 2000*6*1)÷100
SI = (120)
Amt = 2000 + 120 =₹2120
P2 = 2120-700=1420
SI = (1420*6*2)÷100
SI = 170.4

Amt = 1420+170.4=1590.4

I am not able to understand why do we have to subtract ₹700 from initial amount ₹2000 . Shikha withdrew ₹700 at the end of the first year .

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