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30 March, 10:11

Leon deposited $30000 in a bank which paid 2% interest per year. After 1 year, Leon withdrew all his money including the interest. how much money did Leon withdraw?

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  1. 30 March, 10:20
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    The amount of money Leon had after 1 year will be given by:

    A=P (1+r) ^n

    where:

    P=principle

    r=rate

    n=time

    But from the information given:

    P=$30,000, r=2%, n=1 year

    thus

    A=30000 (1+2/100) ^1

    A=30000 (1.02) ^1

    A=$30600

    Thus amount after 1 year was $30600
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