Multiple choice

A person closes his account in an investment scheme by withdrawing Rs. 10,000. One year ago he had withdrawn Rs. 6,000. Two years ago he had withdrawn Rs. 5,000. Three years ago he had not withdrawn any money. How much money had he deposited approximately at the time of openting the account 4 years ago, if the annual simple interest is 10%?

  1. Rs. 15,500

  2. Rs. 16,500

  3. Rs. 17,280

  4. Rs. 14,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let initial deposit be P. Simple interest at 10% annually means 10% of P accumulates each year. Withdrawals: 4 yrs ago opened, 3 yrs ago: 0 withdrawn, 2 yrs ago: 5000, 1 yr ago: 6000, now: 10000. Total withdrawn = 21000. Interest earned: Year 1: 0.1P, Year 2: 0.1P, Year 3: 0.1P, Year 4: 0.1P = 0.4P. Balance equation: P + 0.4P - 5000 - 6000 - 10000 = 0 (account closed). So 1.4P = 21000, P = 21000/1.4 = 15000. Closest is Rs. 15500. The 'approximately' suggests slight rounding or the answer considers timing differently.

Keep practicing — related questions