Sawaal
29
Q:

A man invests Rs.5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year

A) Rs.5624.32 B) Rs.5423
C) Rs.5634 D) Rs.5976

Answer:   A) Rs.5624.32



Explanation:

 

 

 

5% is the rate of interest. 20% of the interest amount is paid as tax.

 

i.e  80% of the interest amount stays back.

 

 if we compute the rate of interest as 80% of 5% = 4% p.a., we will get the same value.

  

The interest accrued for 3 years in compound interest = 3 x simple interest on principal + 3 x interest on simple interest + 1 x interest on interest on interest.

 

= 3 x (200) + 3 x (8) + 1 x 0.32 =600 + 24 + 0.32 = 624.32

 

 

 

The amount at the end of 3 years = 5000 + 624.32 = 5624.32

Subject: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams
Job Role: Bank PO
Related Questions
Q:

Amit borrowed a sum of Rs. 25,000 on simple interest. Bhola borrowed the same amount on compound interest(interest compounded yearly). At the end of 2 years, Bhola had to pay Rs. 160 more interest than Amit. The rate of interest charged per annum is:

 

A) 1625∘∘ B) 825∘∘
C) 8∘∘ D) 318∘∘
 
Answer & Explanation Answer: C) 8∘∘

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

4 1077
Q:

A sum of Rs 15000 is lent at compound interest (compounded annually) at an interest rate of 20% per annum. If the interest is compounded half yearly, then how much more interest (in Rs) will be obtained in one year?

 

A) 225   B) 150  
C) 75   D) 300
 
Answer & Explanation Answer: B) 150  

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

4 935
Q:

A sum of money when invested for a year at the rate of 10% interest per annum compounded half-yearly becomes ₹ 44,100 at maturity. The sum invested was ............

 

A) ₹ 40000 B) ₹ 40500
C) ₹ 39800 D) ₹ 40250
 
Answer & Explanation Answer: A) ₹ 40000

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

3 975
Q:

A certain sum amounts to Rs.280900 in 2 years at 6% per annum, interest compounded annually. The sum is:

 

A) Rs.250000 B) Rs.200000
C) Rs.350000 D) Rs.550000
 
Answer & Explanation Answer: A) Rs.250000

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

0 953
Q:

₹ 10000, invested at 30% rate of interest per annum. but compounded every four months, will give an amount of ₹ ...... in one year.

 

A) 13270 B) 13000
C) 13300 D) 13310
 
Answer & Explanation Answer: D) 13310

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

1 4605
Q:

The compound interest on a certain sum at the end of two years is Rs.408. The simple interest on the same sum for the same time is Rs.400. The rate of interest per annum is:

 

 

A) 2% B) 80%
C) 40% D) 8%
 
Answer & Explanation Answer: A) 2%

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

2 1030
Q:

Rs 10000 is kept at compound interest at an interest rate of 18% per annum (compounding annually). If the compounding of interest is done half yearly, then how much more interest (in Rs) will be obtained?

 

A) 243 B) 324
C) 81 D) 162
 
Answer & Explanation Answer: C) 81

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

4 856
Q:

A sum of Rs 6000 is borrowed at compound interest at the rate of 8% per annum. What will be the amount (in Rs) after 2 years?

 

A)  6998.4 B) 6960
C) 6784.4 D) 6869.4
 
Answer & Explanation Answer: A)  6998.4

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest - Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams

1 925