Directions: Based on the following passage, answer the questions which follow A took a voluntary retirement on February 1st, 2014 and received 10 lakhs as retirement benefits. As on that day he also…

Question

Directions: Based on the following passage, answer the questions which follow A took a voluntary retirement on February 1st, 2014 and received 10 lakhs as retirement benefits. As on that day he also had Rs 3 lakhs in the bank. Of the total amount he had, 60% was invested in the bank which gives an annual compounded interest of 15%, for three years. Of the remaining part, half was invested in shares, which appreciated by 15% in the first year, 6% in the second year and depreciated by 10% the next year. The remaining part was invested in real estate. The real estate values increased by 10% in the first year, reduced by 10% in the next year and remained steady in the third year. What was the value (in rupees lakhs) of A’s investment on February 1st, 2015?

PYQPulse · Accepted Answer

B. 14.82 lakhs

PYQPulse · Answer

Explanation: b) Total amount 1st February 2014 = 10 +3 = Rs 13 lakhs Bank Shares Real estate 7.8 lakhs 2.6 2.6 For 1st year, value in bank will increase by 15%. So, total value will be 1.15 times of previous value. Hence, value after 1 year in bank = 7.8*1.15 = 8.97 For the first year, share value increases by 15%. Hence, value after 1 year in shares = 2.6*1.5 = 2.99 Similarly, Value after 1 year in real estate = 2.6*1.1 = 2.86 Total value in 2015 = Rs 14.82 lakhs.

Answer: B. B. 14.82 lakhs

Explanation

Answer: B. B. 14.82 lakhs

Explanation