A man deposited Rs. 10,000 in a bank at the rate of 5% simple interest annually. Find the amount in 15th year since he deposited the amount and also calculate the total amount after 20 years.
Let Rs. a be the value of the certificates purchased by him in the first year and Rs. d be the value of the certificate in excess every year.
∴ d = Rs. 25
Since the value of the certificates purchased by him after 20 years = 7250
∴
2a + 475 = 725 2a = 250 a = Rs. 125
∴ Value of the certificates purchased by him in the first year = Rs. 125 New line Value of the certificates purchased by him in the 13th year = a + (13 - 1)d = 125 + 12(25) = Rs. 425