Answer to Question #292989 in Financial Math for Elle

Question

Alice deposits 1788 € for 3 months in a bank account which has an annual interest rate of 2.4 % (p.a.). Calculate the net accrued interest when the tax at source rate is 30 %.

Answer 1

Solution:

$P=1788 \ €, t=3\ months, r=2.4\ \%\ p.a \\ I=\dfrac{Prt}{100}=\dfrac{1788\times3\times2.4}{100\times 12}=10.728$

Now, tax at source rate is 30 %.

So, $I=70\%\ of \ 10.728=7.5096\ €$