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Question
A man deposited Rs 10000 in a bank at the rate of 5% simple interest annually. Find the amount in 15th year since he deposited the amount and also calculate the total amount after 20 years.
Solution
Amount deposited in bank = 10000 Rs.
Rate of interest = 5% Per year
Interest after one year = `(10000 xx 5 xx 1)/100 `
= 500 Rs.
In this way he will get Rs. 500 interest every year.
1 year, 2 years, 3 years,……. amount of interest after
500, 1000, 1500, …....
Interest in 15th year = (n – 1) × 500
= (15 – 1) × 500
= 14 × 500
= 7000 Rs.
Principal amount = 10000 Rs.
In his account in the 15th year = Rs. 10000 + 7000 = Rs. 17000
20 years interest = 20 × 500
Interest for 20 years = 20 × 500
= 10000 Rs.
Principal amount = 10000 Rs.
Total deposit in bank after 20 years = Rs. 10000 + 10000 = Rs. 20000
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