Question

Mr. Bede wins Rs. 120000 on Kaun Banega Crorepati. He has to pay 25% as gift tax to the government. He places remaining money in fixed deposit @ 10% compounded annually. However, he has to pay 20% tax on the interest. How much money does Mr. Bede has after 4 years?​

Answer 1

Answer:

Rs. 122444

Step-by-step explanation:

Bede has Rs 90000 with him after paying 25% as gift tax. (120000 - 25% = 90000)

Invested Interest Tax

Year 1 90000 9000 1800

Year 2 97200 9720 1944

Year 3 104976 10497.60 2099.52

Year 4 113374.08 11337.408 2267.4816

So, Bede has Rs. (113374.08 + 11337.408 – 2267.4816) = Rs. 122444 at the end of 4th year.