Question
Deepak invested Rs. 50000 in a bond which was giving him 10% interest per annum at compound interest. Find the money received by Deepak after 3 years if he has to pay 20% tax on the compound interest every year.
Answer: Option E
:
E
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E
Deepak was getting 10% interest, 20% of the interest i.e. 20% of 10% (=2%) was the tax which he had to pay, so the net interest rate (after tax) =10−2=8%
So, amount received by him after 3 years =50000(1+(8100))3=Rs.62985.6
Hence option (5)
2nd method:- By, pascal triangles for n=3 & r=8%. Option (5).
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