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    Question

    Suresh invested Rs. 12,000 at simple interest of 5% p.a. If

    he kept withdrawing Rs. 2,000 after every one year, then find the total interest earned by Suresh at the end of three years. [Consider that the interest is payable at the end of three years, only]
    A Rs. 1,500 Correct Answer Incorrect Answer
    B Rs. 1,600 Correct Answer Incorrect Answer
    C Rs. 1,800 Correct Answer Incorrect Answer
    D Rs. 1,700 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Simple interest = Sum ร— rate of interest ร— time period รท 100
    So, interest earned in the first year
    = 12000 ร— 5 ร— 1 รท 100 = Rs. 600
    And interest earned in the second year
    = (12000 โˆ’ 2000) ร— 5 ร— 1 รท 100 = Rs. 500
    And interest earned in the third year
    = (12000 โˆ’ 4000) ร— 5 ร— 1 รท 100 = Rs. 400
    So, total interest earned = 600 + 500 + 400 = Rs. 1,500

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