Question

A person deposited a sum of 50,000 in a fixed deposit account which returns an annual interest of 10 percent compounded annually. However, an income tax of $20\%$ is deducted on the interest amount at the end of each year. What would be the final value of the investment after 2 years?

• A. ₹ 58,000
• B. ₹ 58,320
• C. ₹ 59,400
• D. ₹ 60,500

Answer 1

Answer: (B)

₹ 58,320

Answer 2

The correct answer is (B): ₹ 58,320