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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 ├Ч rate of interest ├Ч time period ├╖ 100
    So, interest earned in the first year
    = 30000 ├Ч 8 ├Ч 1 ├╖ 100 = Rs. 2,400
    And interest earned in the second year
    = (30000 тИТ 6000) ├Ч 8 ├Ч 1 ├╖ 100 = Rs. 1,920
    And interest earned in the third year
    = (30000 тИТ 12000) ├Ч 8 ├Ч 1 ├╖ 100 = Rs. 1,440
    So, total interest earned = 2400 + 1920 + 1440 = Rs. 5,760

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