Multiple choice

A man invests Rs. 124000 for 9 years at 5% SI. Income tax at the rate of 19% is deducted from interest earned at the end of every year. Find the amount at the end of the 9th year?

  1. Rs. 169198

  2. RS. 169918

  3. Rs. 196918

  4. Rs. 199698

  5. None
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A Correct answer
Explanation

Interest each year = 124000 * 0.05 = 6200. Tax = 19% of 6200 = 1178. Net interest = 6200 - 1178 = 5022. Total amount after 9 years = 124000 + (9 * 5022) = 124000 + 45198 = 169198.

AI explanation

The annual simple interest is 5 percent of 124000, which equals 6200. After a 19 percent income tax deduction, the net annual interest received is 81 percent of 6200, which equals 5022. Over 9 years, the total net interest accumulated is 9 multiplied by 5022, resulting in 45198, and adding this to the original principal of 124000 gives a final amount of Rs. 169198.

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