Peter invested 240000 for 2 years at 10% per annum compounded annually. If 20%o of the accrued interest at the end of each year is deducted as income tax, find the amount he received at the end of 2 years.ok
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Answer:
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.
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total Money received - 279936
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