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Question

Direction (Q. 61 - 65): Read the following data and table to answer the following questions. There are five persons Jack, Jill, John, Jimmy and Joseph. There are three investment schemes in which these five persons can invest their money. The details of these schemes are given below. Note: (i) Amount cannot be withdrawn before maturity period.  (ii) No reinvestment after maturity period is allowed in any scheme. (iii) Total Amount (including interest) is payable at the end of the maturity period.

Jill has to invest Rs 18 lakh wants to invest for a period of not more than 3 years. What is the maximum possible interest that he can receive by investing in these schemes? (he can invest in more than one scheme) 

A Rs 3,10,000 Correct Answer Incorrect Answer
B Rs 3,00,000 Correct Answer Incorrect Answer
C Rs 5,00,000 Correct Answer Incorrect Answer
D Rs 5,70,000 Correct Answer Incorrect Answer
E Rs 3,25,000 Correct Answer Incorrect Answer

Solution

As he has to invest for a period of not more than 3 years. So he can invest in either shares or debentures. For maximum interest he should invest more money in Shares (as it has higher R × T ratio than that of debentures) So he invests Rs 10 lakh i.e the upper limit in shares and remaining amount in debentures. But the limit in debentures is Rs 6 lakh. So he can only invest Rs 16 lakh out of the total amount he has. Total interest on this Rs 16 lakh = 10L × 14 × 3/100 + 6L× 5 × 5/100 = Rs 420000 + Rs 150000 = Rs 570000

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