Question

    Neha invested Rs. 25,000 at simple interest of 12% p.a. If

    she kept withdrawing Rs. 5,000 after every one year, then find the total interest earned by Neha at the end of three years. [Consider that the interest is payable at the end of three years, only]
    A Rs. 6,000 Correct Answer Incorrect Answer
    B Rs. 5,400 Correct Answer Incorrect Answer
    C Rs. 6,300 Correct Answer Incorrect Answer
    D Rs. 5,700 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Simple interest = Sum ├Ч rate of interest ├Ч time period ├╖ 100
    So, interest earned in the first year
    = 25000 ├Ч 12 ├Ч 1 ├╖ 100 = Rs. 3,000
    And interest earned in the second year
    = (25000 тИТ 5000) ├Ч 12 ├Ч 1 ├╖ 100 = Rs. 2,400
    And interest earned in the third year
    = (25000 тИТ 10000) ├Ч 12 ├Ч 1 ├╖ 100 = Rs. 1,800
    So, total interest earned = 3000 + 2400 + 1800 = Rs. 7,200

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