A person deposited ₹2,500 in a bank that pays 8% simple…

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

Show answer & explanation

Correct answer: A

Explanation

The correct answer is Option 1 i.e. ₹2,108.

SI = $PRT\over100$

SI₁ = $2500\times8\times1\over100$ = ₹200

Amount after 1 year = 2500 + 200 = ₹2700

Waithdraw = ₹1000

Remaining = ₹1700

SI₂ = $1700\times8\times3\over100$ = ₹408

Final balance = 1700 + 408 = ₹2,108

SSC MTS 2024 PYQ — Question 9