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    Question

    Rohit invested Rs. 18,000 at simple interest of 6% p.a. If

    he kept withdrawing Rs. 3,000 after every one year, then find the total interest earned by Rohit at the end of three years. [Consider that the interest is payable at the end of three years, only]
    A Rs. 2,700 Correct Answer Incorrect Answer
    B Rs. 2,520 Correct Answer Incorrect Answer
    C Rs. 2,880 Correct Answer Incorrect Answer
    D Rs. 2,340 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Simple interest = Sum × rate of interest × time period ÷ 100
    So, interest earned in the first year
    = 18000 × 6 × 1 ÷ 100 = Rs. 1,080
    And interest earned in the second year
    = (18000 − 3000) × 6 × 1 ÷ 100 = Rs. 900
    And interest earned in the third year
    = (18000 − 6000) × 6 × 1 ÷ 100 = Rs. 720
    So, total interest earned = 1080 + 900 + 720 = Rs. 2,700

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