Answer:
$225
Step-by-step explanation:
Given that:
Principal = $6,000
Interest rate = 5%
Time = 1 year
Taxes paid = 25% on the interest earned
To find:
Money earned after paying taxes ?
Solution:
First of all, let us calculate the total interest earned:
Formula for Simple Interest is given as:
[tex]SI =\dfrac{PRT}{100}[/tex]
Where P is the principal
R is the rate of interest
T is the time taken
Putting the given values:
[tex]SI =\dfrac{6000 \times 5\times 1}{100} =\$300[/tex]
Now, it is given that 25% of the interest earned is given as taxes.
Taxes paid = 25% of $300
[tex]\Rightarrow \dfrac{25}{100} \times 300 =\$75[/tex]
Therefore, the money earned = Interest earned - Taxes paid
The money earned = $300 - $75 = $225
