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.

Answer 1

It is given that the man deposited Rs 10000 in a bank at the rate of 5% simple interest annually.
∴ Interest in first year =$\frac{5 }{ 100 }× Rs\,\, 10000 = Rs \,\,500$
∴Amount in 15th year = Rs 1$0000 + 500 + 500 + .... + 500 → 14$ times
= Rs 10000 + 14 × Rs 500
= Rs 10000 + Rs 7000
= Rs 17000
Amount after 20 years = Rs $10000 + 500 + 500 + ... + 500 → 20$ times
= Rs 10000 + 20 × Rs 500
= Rs 10000 + Rs 10000
= Rs 20000