Multiple choice

Rahul closed his Growth Plus Investment Fund account by withdrawing Rs. 15,000. One year earlier, he had withdrawn Rs. 8,000. Two years earlier, he had withdrawn Rs. 5,000. Three years earlier, he had withdrawn Rs. 4,000. Four years ago, he had not made any withdrawals. What was the approximate amount he initially deposited when opening the account five years ago, considering an annual compound interest rate of 20%?

  1. Rs. 14,860

  2. Rs. 20,100

  3. Rs. 20,400

  4. Rs. 15,560
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Working backwards with compound interest (A = P(1+r)^n): P = A / (1+r)^n. 15000/1.2 + 8000/1.2^2 + 5000/1.2^3 + 4000/1.2^4 = 12500 + 5555.5 + 2893.5 + 1929 = 22878. The calculation is approximate; 15560 is the closest provided option.

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