Question
A bank balance increases by 10% every year due to
interest. If the balance after 2 years will be ₹24,200, find the original amount deposited.Solution
ATQ,
Let, the present balance be ‘x’.
ATQ,
So, the balance after 2 years = 1.10 × 1.10 × x = 24200
Or, x = 24200 × (1/1.10) × (1/1.10)
So, x = ₹20,000
Therefore, the original amount deposited = x = ₹20,000
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