Question
A man invests ₹50,000 in a scheme offering compound
interest at 10% per annum, compounded annually. He withdraws ₹25,000 after 2 years. If he lets the remaining amount grow for another 2 years, what will be the final amount in the account?Solution
Amount after 2 years = ₹50,000 × (1 + 10/100)² = ₹50,000 × 1.21 = ₹60,500. After withdrawal, remaining principal = ₹60,500 - ₹25,000 = ₹35,500. Final amount after 4 years = ₹35,500 × (1 + 10/100)² = ₹35,500 × 1.21 = ₹42,955. Correct option: D
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