Question

Mr. Shah invested Rs. 3,20,000 in a bank at 10% compound interest . He also invested Rs. 2,40,000 in mutual funds. At market rates he got Rs. 3,05,000 after 2 years. Which of his investments was more profitable ?​

Answer 1

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Mr. Shah invested Rs. 3,20,000 in the bank and got Rs. 67,200 as interest.

Let us see percentage of interest obtained on the investment.

The amount Mr. Shah got at the end of 2 years from the mutual fund = 3,05,000 rupees

$\implies$ The gain from the mutual fund = 3,05,000 - 2,40,000 = 65,000 rupees

$\implies$ Percentage gain = 65000 x 100 / 240000 = 27.08

The investment in the mutual fund yielded a profit of 27.08% .

It is clear that Mr. Shah's investment in the mutual fund was more profitable.

Answer 2

Step-by-step explanation:

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MATHS

Mr. Shah invested Rs. 3,20,000 in bank at 10% compound interest. He also invested Rs. 2,40,000 in mutual funds. At market rates he got Rs. 3,05,000 after 2 years. How much did he gain? Which of his investments was more profitable?

December 26, 2019avatar

Kshitija Sree

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ANSWER

1

st

year

P=Rs 3,20,000

r=10% p.a.

t=1 yr

∴Interest=Rs

100

3,20,000×10×1

=Rs 32000

∴A=Rs 3,52,000

2

nd

year

P=Rs 3,52,000

r=10%.p.a.

t=1 yr

∴I=Rs

100

352000×10×1

=Rs 35,200

∴A=Rs 3,,87,200 ............. (1)

Mutual funds

Investment =Rs 2,40,000

Final amount =Rs 3,05,000 .......... (2)

∴ Profit =Rs 65,000

∴ He earned Rs 65,000 as profit in mutual funds. ........... Ans (i)

Now from (1) and (2)

We find bank's investment was more profitable.