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If 5% of interest on Rs 10800 at 10% rate for 4 year is to be paid as tax ,then what will be the total amount after 4 year?​

User Xshoppyx
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1 Answer

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Answer: To calculate the total amount after 4 years, we need to consider the interest earned on the principal amount and subtract the tax amount.

Given:

Principal amount (P) = Rs 10,800

Interest rate (R) = 10% per year

Time (t) = 4 years

Tax rate = 5% of the interest earned

Step 1: Calculate the interest earned over 4 years.

Interest (I) = P * R * t

Interest (I) = 10800 * 0.10 * 4

Interest (I) = 4320

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

Tax amount = 5% of the interest

Tax amount = 0.05 * 4320

Tax amount = 216

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

Net interest = Interest - Tax amount

Net interest = 4320 - 216

Net interest = 4104

Step 4: Calculate the total amount after 4 years by adding the net interest to the principal amount.

Total amount = Principal amount + Net interest

Total amount = 10800 + 4104

Total amount = 14904

So, the total amount after 4 years will be Rs 14,904.

User Kurt Hamilton
by
7.9k points
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