Question

4. Mr Sayyad kept 40,000 in a bank at 8%
compound interest for 2 years. Mr Fernandes
invested 1,20,000 in a mutual fund for 2 years.
After 2 years, Mr Fernandes got 1,92,000.
Whose investment turned out to be more
profitable?​

Answer 1

Answer:

Mr. Sayyad:-

A=P(1+r)

t

A=40,000(1+0.08)

2

A=40000(1.08)

2

A=46656

CI=A−P=46656−40000

=6656Rs.

Profit%=

40000

6656

×100=16.64%

Mr. Fernandes:-

Profit =192000−120000

=72000

Profit%=

120000

72000

×100

=60%.

Clearly, Mr. Fernandes's investment was more profitable.