Question

Mr. Rajan invested Rs 1,00,000 in US Stock Markets when the GBPINR rate was 75. After one year his investment appreciated by 20% in GBP terms. He sold of his investments and repatriated the money to India at the then existing rate of 80. what was real returns in INR?

A) loss of 24% B) gain of 28% C) loss of 28% D) gain of 20%

Answer 1

gain of 28 ℅..............

Answer 2

Answer:

Gain of 28%

Step-by-step explanation:

Money invested by Rajan before 1 year was = Rs. 100000

Money in UK pounds @ 75 is = 100000/75 = 1333.33 Pounds

Now, after 1 year invested amount was appreciated by 20%

=> 20% of 1333.33 = 266.66

Total investment becomes = 1333.33 + 266.66 = 1600 Pounds

This 1600 Pounds @ Indian currency at 80 = 1600 x 80 = Rs. 1,28,000

Hence, Rajan's investment of Rs. 1,00,000 becomes Rs. 1,28,000 in 1 year

Therefore, his profit % = [(128000 - 100000)/100000] x 100 = 28%.

Hope it's help