By Ajay Kumar

Verified by Ajay Kumar

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?

  1. ₹1,65,000

  2. ₹1,72,000

  3. ₹1,73,250

  4. ₹1,75,000

Answer: C

Solution

First-year interest = \(150000\times\frac{10}{100}\) = ₹15,000. Withdrawal = ₹7,500. Remaining balance = ₹1,65,000 − ₹7,500 = ₹1,57,500. Second-year interest = \(157500\times\frac{10}{100}\) = ₹15,750. Final balance = ₹1,57,500 + ₹15,750 = ₹1,73,250.

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