Question

Mr Hiralal invested rupees 215000 in mutual fund he got rupees 305000 after 2 years Mr ramniklal invested rupees 140000 at 8% compound interest for 2 years in a bank find out the percent gain of each of them whose investment was more profitable

Answer 1

first case :

principal = ₹215000

after 2 years:

amount = 30,5000

gain = amount - principal

= 30,5000 - 215000 = ₹90,000

gain% = gain × 100/ principal

= 90,000 × 100/ 215000

= 41.8%

second case:

principal = 140000, time = 2yrs

rate = 8%

amount = p ( 1 + r/ 100)^t

= 140000( 1 + 8/100)^2

= 140000 × 1.08 × 1.08

= ₹163296

gain = amount - principal

= ₹163296 - 140000

= ₹23496

gain% = gain × 100/ principal

gain% = 23296 × 100/ 140000

= 16.6%

hiralal's gain = 41.8%

ramniklal's gain = 16.6%

Answer:

hiralal's investment was more profitable