Question

A person deposited ₹2,500 in a bank that pays 8% simple interest. He withdrew ₹1,000 (from amount) at the end of the first year. What will be his balance after 4 years?

• A. ₹2,018
• B. ₹2,108
• C. ₹2,480
• D. ₹2,280

Answer 1

Answer:

B. ₹2,108

Given:

• Initial deposit = ₹2500

• Rate = 8% simple interest

• Withdrawal = ₹1000 at the end of 1st year

• Total time = 4 years

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Step 1: Amount after 1st year

Interest for 1 year:
$2500 \times \frac{8}{100} = 200$

Amount after 1 year:
$2500 + 200 = 2700$

After withdrawing ₹1000:
$2700 - 1000 = 1700$

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Step 2: Interest on remaining amount for next 3 years

$\text{SI} = \frac{1700 \times 8 \times 3}{100} = 408$

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Step 3: Final balance after 4 years

$1700 + 408 = \boxed{2108}$

Balance after 4 years = ₹2108