Roshan invests rupees 240000 for 2 years at 10% per annum compounded annually if the Income Tax at 20% is deducted at the end of each year on the interest find the amount he will receive at the end of 2 years
Answers
The Invested amount is Rs 240000
Time given is 2 years and Rate of interest given is 10 %
Interest for 1st year wud be = 240000*10*1/ 100 = Rs 24000
Amount deducted for tax =20% of the interest = 20*24000/100 = 4800
Left amount wud be = 24000-4800 = 19200
principle for 2nd year = 240000+19200 = 259200
Interest for 2nd year = 259200*10*1/100 = 25920
Deducted amount for tax for 2nd year = 20*25920/100 = 5184
Actual total interest = 24000 + 25920 = 49920
Total money deducted for tax = 4800 + 5184 = 9984
Amount of the total interest he received = 49920-9984 = 39936
So yipeee got the answer
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Step-by-step explanation:
For the first year :
P = Rs. 240000, n = 1 and r = 10% p.a.
A = P(1 + r/100)
A = 240000 (1 + 10/100)
A = Rs. 264000
Interest = 264000 - 240000 = Rs. 24000
Tax = 20/100 of 24000 = Rs. 4800
For second year :
P = 264000 - 4800 = Rs. 259200, n = 1 year, r = 10% p.a.
A = 259200(1 + 10/100)
A = Rs. 25920
Tax = 20% of 25920 = Rs. 5184
He received 285120 - 5184 = Rs. 279936 after two years.
Hope you understand
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