Question
Rohit invested Rs. 18,000 at simple interest of 6% p.a. If
he kept withdrawing Rs. 3,000 after every one year, then find the total interest earned by Rohit at the end of three years. [Consider that the interest is payable at the end of three years, only]Solution
Simple interest = Sum × rate of interest × time period ÷ 100
So, interest earned in the first year
= 18000 × 6 × 1 ÷ 100 = Rs. 1,080
And interest earned in the second year
= (18000 − 3000) × 6 × 1 ÷ 100 = Rs. 900
And interest earned in the third year
= (18000 − 6000) × 6 × 1 ÷ 100 = Rs. 720
So, total interest earned = 1080 + 900 + 720 = Rs. 2,700
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