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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.
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Solution
In Simple Interest, the amount after n years is given by:
Amount = `P +(P xx R xx T)/100`
where:
- P = Principal = ₹ 10,000
- R = Rate of interest per annum = 5%
- T = Time in years = 15 and 20 years
Amount after 15 years:
`"SI"_15 = (10000 xx 5 xx 15)/100 = ₹ 7,500`
Amount15 = 10000 + 7500 = ₹ 17,500
Amount after 20 years:
`"SI"_20 = (10000 xx 5 xx 20)/100 = ₹ 10,000`
Amount20 = 10000 + 10000 = ₹ 20,000
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