Given Principal amount P = Rs 2000
Time period T = 1 year
Rate of interest R = 6% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (2000 × 1 × 6)/100
= Rs 120
So amount after 1 year = Principal amount + Interest = 2000 + 120 = Rs 2120
after 1 year, amount withdrawn = Rs 700
Principal amount left = Rs 2120 − Rs 700 = Rs 1420
Time period = 2 years
Rate of interest = 6% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (1420 × 2 × 6)/100
Interest after two years = Rs 170.40
Total amount after 3 years = Rs 1420 + Rs 170.40 = Rs 1590.40