A man invests Rs.5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year	Choose one
A) 5624.32	B) 5624.39	C) 5654.32	D) 5624.38	E) 5624.35
Explanation:   5% is the rate of interest. 20% of the interest amount is paid as tax.   i.e 80% of the interest amount stays back.   if we compute the rate of interest as 80% of 5% = 4% p.a., we will get the same value.   The interest accrued for 3 years in compound interest = 3 x simple interest on principal + 3 x interest on simple interest + 1 x interest on interest on interest.   = 3 x (200) + 3 x (8) + 1 x 0.32 =600 + 24 + 0.32= 
<gadget id="calculator">600 + 24 + 0.32</gadget>
<output>624.32</output>
624.32   The amount at the end of 3 years= 5000 + 624.32= 
<gadget id="calculator">5000 + 624.32</gadget>
<output>5_624.32</output>
5624.32   5624.32nswer: 5624.32) Rs.5624.32
<result>A</result>
A man invests Rs.5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year