A businessman deposits 60% of his income to a bank yearly. If this amount becomes 10 million rupee i

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27 Nov 2012 income

A businessman deposits 60% of his income to a bank yearly. If this amount becomes 10 million rupee in 5 years and rate of interest compounded annually is 10%, then income in million of the businessman yearly will be

OPtion

1) 4.2
2) 5.2
3) 6.8
4) 7.4
5) 8.9
6) 10.4
7) 11.3
8) 12.5
9) 13.2
10) none of these

Solution

let 60% of income = x
so according to the given condition x*[1.1]^5 = 10
x = 10/[1.1]^5 = 6.209
so yearly income = 6.209*100/60 = 10.4 million

Correct Option: 6 Best Solution (0)