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Money withdrawn at the end of the year = 700 Rs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

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