Find the total worth of Manik? Statement I: A compound interest at 10% on his principal, followed by a tax rate of 4% on the interest, give a total interest to Manik of Rs. 1500 this year. Statement II: The interest is compounded once every six months. Statement III: A sum becomes triples in 4 years.
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Any two
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I and II
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I and II or III
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Only I
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None of these
B
Correct answer
Explanation
Statement I: CI at 10% + 4% tax on interest = Rs 1500. Semi-annual compounding means 5% per half-year. CI for 1 year = P[(1.05)² - 1] = 0.1025P. After 4% tax: 0.1025P × 0.96 = 0.0984P = 1500 → P ≈ 15244. Statement II confirms semi-annual compounding (same assumption). Statement III: tripling in 4 years gives different rate (not needed). With I and II we can solve for P. The answer key says B (I and II) which is correct.