Shikha deposited Rs 2000 in a bank which pays 6% simple intrest.She withdrew Rs 700 at the end of first year .What will be her balance after 3 years?
principal = 2000 Rs
R = 6%
Interest after one year = P* N * R /100 = 2000 * 1 * 6/100 = 120 Rs
Money withdrawn at the end of the year = 700 Rs
Net amount at the end of 1st year = principal + interest - withdrawal = 2000 + 120 - 700 = 1420 Rs
For the next two years simple interest will be paid for 1420 Rs at the rate of 6%
Interest for next two years = P * N * R/100 = 1420 * 2 * 6/100 = 170.40 Rs
Balance after 3 years = 1420 + 170.40 = 1590.40 Rs