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If the bank leived 5% tax in the interest of sum Rs75000 at 5.6% interest rate for 6 months ,then what amount will be received after 6 months?​

User Specterace
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1 Answer

3 votes

Answer: To calculate the amount received after 6 months with tax levied on the interest, we need to first find the interest earned and then subtract the tax amount.

Given:

Principal amount (P) = Rs 75,000

Interest rate (R) = 5.6% per year

Time (t) = 6 months = 6/12 years (since the interest rate is annual)

Step 1: Calculate the interest earned over 6 months.

Interest (I) = P * R * t

Interest (I) = 75000 * 0.056 * (6/12)

Interest (I) = 75000 * 0.028

Interest (I) = 2100

Step 2: Calculate the tax amount on the interest earned.

Tax rate = 5% of the interest

Tax amount = 0.05 * 2100

Tax amount = 105

Step 3: Subtract the tax amount from the interest earned to get the net interest.

Net interest = Interest - Tax amount

Net interest = 2100 - 105

Net interest = 1995

Step 4: Add the net interest to the principal amount to get the total amount received after 6 months.

Total amount = Principal amount + Net interest

Total amount = 75000 + 1995

Total amount = 76995

So, the amount received after 6 months with tax levied on the interest is Rs 76,995.

User Odane
by
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