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      Question

      Karan invested Rs. 30,000 at simple interest of 8% p.a.

      If he kept withdrawing Rs. 6,000 after every one year, then find the total interest earned by Karan at the end of three years. [Consider that the interest is payable at the end of three years, only]
      A Rs. 5,280 Correct Answer Incorrect Answer
      B Rs. 5,760 Correct Answer Incorrect Answer
      C Rs. 6,000 Correct Answer Incorrect Answer
      D Rs. 5,400 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Simple interest = Sum Γ— rate of interest Γ— time period Γ· 100
      So, interest earned in the first year
      = 30000 Γ— 8 Γ— 1 Γ· 100 = Rs. 2,400
      And interest earned in the second year
      = (30000 βˆ’ 6000) Γ— 8 Γ— 1 Γ· 100 = Rs. 1,920
      And interest earned in the third year
      = (30000 βˆ’ 12000) Γ— 8 Γ— 1 Γ· 100 = Rs. 1,440
      So, total interest earned = 2400 + 1920 + 1440 = Rs. 5,760

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