📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

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

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question