Question

a senior citizen invest tk 50 lac in a fixed deposit scheme at 11.5% annual interest for six months. in every six months he withdraws tk 2 lac from his principals plus interest earned. what will be his principal amount to invest after 2 years?

Answer 1

Consider principle amount = p, interest rate = i and time = n.  The formulae is P(1 + i) ⁿ.  We can get 62.16125.

Then, 62.16125- 50 is 12.16125. If he withdraws two lakh every period, then the amount withdrawn for 4 periods is 2x4 = 8 lakh.

We need to add 12.16125 + 8 = 20.16125. The remaining amount is 62.16125 - 20.16125 = 42 lac.