Question

A man invests ₹50,000 in a business. After 2 years, he sells 30% of his stake for a 40% profit and reinvests the amount. After another year, he sells 25% of his remaining stake at a 50% profit and reinvests half of the profit. At the end of 4 years, he sells the rest of his stake, which has appreciated by 35%. What is the total value of his investment at the end of 4 years?

Q: Answer-A man invests ₹50,000 in a business. After 2 years, he sells 30% of his stake for a 40% profit and r...

Initial investment 50,000. First sale after 2 years 30 of 50,000 15,000. Profit 15,000 40 6,000. Reinvested amount 15,000 6,000 21,000. Remaining stake after 1st sale 50,000 - 15,000 35,000. Second sale after 3 years 25 of 35,000 8,750. Profit 8,750 50 4,375. Reinvested amount 8,750 2,187.5 half the profit 10,937.5. Remaining stake after 2nd sale 35,000 - 8,750 26,250. Appreciation after 4 years 26,250 35 9,187.5. Final value of remaining stake 26,250 9,187.5 35,437.5. Total value 21,000 10,937.5 35,437.5 67,375. Plus profit reinvested earlier 6,000 4,375 10,375. Final value 67,375 10,375 77,750. Closest option a 77,750.