Question
A man deposited 20% 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. 4200, 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] = 4200 0.21x = 4200, x = 20000 So, monthly income of man = 20000/0.2 = Rs. 100000 Required monthly expenditure of man = 55% of 100000 = Rs. 55000
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