A man deposits ₹1,50,000 at a CI rate of 10% p.a. After the first year's interest is credited, he withdraws 50% of the interest earned. What is his account balance at the end of the second year?
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Correct answer: C
Explanation
Principal = ₹150,000
Interest Rate = 10% per annum
50% of the interest earned in the first year is withdrawn.
Interest
Interest for the first year = 150,000 × 10/100 = 15,000
Interest withdrawn = 50% × 15,000 = 7,500
Amount remaining in the account = 150,000 + 15,000 − 7,500 = 157,500
Amount at the end of the second year = 157,500 × 1.10 = ₹173,250