Answer: Rs 7600
Explanation:
The interest will be calculated as:
= Principal × Rate × Time
= 40000 × 5% × 4
= 40000 × 0.05 × 4
= 8000
Since he has to pay 5% of the total interest as tax for the bank, the amount that he will he get after 4 years will be:
= 8000 - (5% × 8000)
= 8000 - (0.05 × 8000)
= 8000 - 400
= 7600
Therefore, he'll get Rs 7600