 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that a man invests $80,000 for two years at 12% per annum compounded annually for the interest he receives. Income tax at 20% is deducted at the end of each year, find the amount received by him at the end of two years. We know that simple interest is equal to P into R into T upon 100 where P is equal to the principal, R is equal to the rate of interest is equal to time. With this key idea we proceed with the solution. We need to calculate the amount received by a man at the end of two years if he invests $80,000 for two years at 12% per annum compounded annually. Also on the interest he receives income tax at 20% is deducted at the end of each year. Here we are given principal P equal to $80,000 the rate of interest R is equal to 12% per annum. So now as we know simple interest is equal to P into R into T upon 100. Therefore for first year interest will be equal to 80,000 into 12 into 1 upon 100 dollars which is equal to 9,600 dollars. Now the tax on 9,600 dollars will be equal to 20% of 9,600 which is equal to 1,920 dollars. So the net amount at the end of first year will be equal to 80,000 which is the principal plus 9,600 which is the interest minus 1,920 which is the tax which is equal to 87,680 dollars. So now for the second year principal will be 87,680 dollars. Therefore interest will be equal to 87,680 into 12 into 1 upon 100 dollars which is equal to 10,521.6 dollars. So now tax on 10,521.6 dollars will be equal to 20% of 10,521.6 dollars which is equal to 2,104.32 dollars. So the net amount after two years will be 87,680 plus 10,521.6 minus 2,104.32 dollars which is equal to 96,097. Hence the amount received by him at the end of two years is equal to 96,097.28 dollars which is our final answer. This completes the session. Hope you have understood it well.