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. 3990, find the monthly expenditure of the man which is 55% of his monthly salary.Solution
Let the amount of money deposited in the bank be Rs. ‘x’. So, x × [(1.1)2 – 1] = 3990 0.21x = 3990, x = 19000 So, monthly income of man = 19000/0.4 = Rs. 47500 Required monthly expenditure of man = 55% of 47500 = Rs. 26125
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