A man invests Rs 3,20,000 for 2 years at 12.5% p.a. compounded annually. If the income tax at the rate of 20% is deducted at the end of each year, on interest accrued, find the amount he received at the end of 2 years.

Question

anonymous · Answer

320000*12.5% = 40000
40000*20% = 8000
40000-8000 = 32000
320000+32000= 352000
repeat for second year

anonymous · Answer

320000*12.5% *2= 8000000
8000000*20% = 1600000
8000000-1600000 = 6400000
6400000+6400000= 12800000

anonymous · Answer

Don't think that is right

anonymous · Answer

So 320000 is the starting value after one year 12.5% of the 320000 is added as interest, but before it is added it is reduced by the income tax by 20%. For the second year you start with 352000

anonymous · Answer

i didn't understand can u plse do it

anonymous · Answer

352000*12.5% = 44000
44000*20% = 8800
44000-8800 = 35200
352000+35200 = 387200

anonymous · Answer

did you get it?

anonymous · Answer

yes
soo this the final answer

anonymous · Answer

It should be if I understood the question.