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Mr. Bede wins Rs. 120000 on Kaun Banega Crorepati. He has to pay 25% as gift tax to the government. He places remaining money in fixed deposit @ 10% compounded annually. However, he has to pay 20% tax on the interest. How much money does Mr. Bede has after 4 years? |
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Answer» Answer: Rs. 122444 Step-by-step EXPLANATION: BEDE has Rs 90000 with him after paying 25% as gift tax. (120000 - 25% = 90000) Invested Interest Tax Year 1 90000 9000 1800 Year 3 104976 10497.60 2099.52 Year 4 113374.08 11337.408 2267.4816 So, Bede has Rs. (113374.08 + 11337.408 – 2267.4816) = Rs. 122444 at the end of 4th year. |
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