IBPS RRB Officer Scale 1 Model Paper 14

A man deposited Rs. 40000 in a bank at 10% pa compound annually for two years. He wanted to keep the amount deposited for the third year also, but there was a new law in place that for any amount in account that date onwards any annual interest greater than Rs. 2500 would be taxed.Also the rate of interest was reduced to 8% pa. What amount should he remove from his account to ensure that he just avoids paying the tax? Assume that his account had zero balance before he deposited Rs. 40000.