An investor earns 3% return on 1/4th of his capital, 5% on 2/3 rd and 11% on the remainder, What is the average rate of return he earns on his total capital? a) 5% b) 10% c) 5.5% d) 10.5%
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Answer:
The average rate of return he earns on his total capital is 5% (approximately)
Step-by-step explanation:
Let, total capital of investor be x rupees.
First given,
he earns 3% return on 1/4th of his capital.
th of capital =
and 3% of
Again given,
he earns 5% on 2/3 rd of capital.
capital
and
It is also given he earn 11% on the remainder.
Remainder part of capital x =
Now,
Now,his total earn
Here x rupees mean 100 %
So, 1 rupee mean
170x/1200 mean
So, average rate of return he earns on his total capital
This is a problem of percentage.
Know more about percentage.
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