Question
A man deposited 40% of his salary to a bank which offers
compound interest at the rate of 10% p.a. If the interest earned by him from the bank after 2 years is Rs. 2520, find the monthly expenditure of the man which is 52% of his monthly salary.ĀSolution
Let the amount of money deposited in the bank be Rs. āxā. So, x Ć [(1.1)2 ā 1] = 2520 0.21x = 2520, x = 12000 So, monthly income of man = 12000/0.4 = Rs. 30000 Required monthly expenditure of man = 52% of 30000 = Rs. 15600
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