Test Index

Time Value of Money

Question : 27 of 99

Marks: +1, -0

\text{₹}10,000

\text{Rs.}\,000

\text{Rs.}

200 ;

Solution:

Concept:

Simple interest calculation with a partial withdrawal mid-term.

Explanation:

Let the rate be

r\%

per annum.

After 2 years, amount =

10000 + \frac{10000 \times r \times 2}{100} = 10000 + 200r

He withdraws ₹6000 (likely missing digit; the problem states ₹,000).

Remaining principal =

10000 + 200r - 6000 = 4000 + 200r

This amount earns interest for next 3 years.

At end of 5 years, amount =

(4000 + 200r) + \frac{(4000+200r) \times r \times 3}{100} = (4000+200r)\left(1 + \frac{3r}{100}\right)

This equals ₹7200. So $(4000+200r

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