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. 3780, find the monthly expenditure of the man which is 53% of his monthly salary.ÂSolution
Let the amount of money deposited in the bank be Rs. ‘x’. So, x × [(1.1)2 – 1] = 3780 0.21x = 3780, x = 18000 So, monthly income of man = 18000/0.20 = Rs. 90000 Required monthly expenditure of man = 53% of 90000 = Rs. 47700
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