New Click here to Enroll in NaBFID Analyst Intro Class on May 6

    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?
    A ₹36,050 Correct Answer Incorrect Answer
    B ₹37,510 Correct Answer Incorrect Answer
    C ₹40,015 Correct Answer Incorrect Answer
    D ₹42,955 Correct Answer Incorrect Answer

    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

    Practice Next

    Relevant for Exams: