Question
A man invests ₹40,000 in a business. After 3 years, he
sells 40% of his stake for a 30% profit and reinvests the amount. After another 2 years, he sells 20% of his remaining stake at a 45% profit and reinvests half of the profit. At the end of 5 years, he sells the rest of his stake, which has appreciated by 25%. What is the total value of his investment at the end of 5 years?Solution
Initial investment = ₹40,000. First sale after 3 years: 40% of ₹40,000 = ₹16,000. Profit = ₹16,000 × 30% = ₹4,800. Reinvested amount = ₹16,000 + ₹4,800 = ₹20,800. Remaining stake after 1st sale = ₹40,000 - ₹16,000 = ₹24,000. Second sale after 5 years: 20% of ₹24,000 = ₹4,800. Profit = ₹4,800 × 45% = ₹2,160. Reinvested amount = ₹4,800 + ₹1,080 (half the profit) = ₹5,880. Remaining stake after 2nd sale = ₹24,000 - ₹4,800 = ₹19,200. Appreciation after 5 years = ₹19,200 × 25% = ₹4,800. Final value of remaining stake = ₹19,200 + ₹4,800 = ₹24,000. Total value = ₹20,800 + ₹5,880 + ₹24,000 = ₹50,680. Plus profit reinvested earlier = ₹4,800 + ₹2,160 = ₹6,960. Final value = ₹50,680 + ₹6,960 = ₹57,640. Closest option: a) ₹57,640.
Identify the Indian state that does not share its borders with Nepal.
Where is Kandla Port located?
Which amongst the following nations is not a member of the G-8 ?
Which of the following countries is not a member of the ASEAN group?
In the Economic Survey 2021-22, India registered its highest-ever annual FDI inflow of _____ dated 31 Jan 2022.
The 92 year old Ardhendu Bhushan Bardhan passed away on 2 January 2016, he was famous?
Consider the following events and arrange these in chronological order.
I. Cripps proposal
II. August offer
III. Wavell plan
The Nobel Peace Prize for which year was awarded to the United Nations World Food Programme (WFP)?
Who was a leading figure in the Narmada Bachao Andolan, a movement focused on the rights of people affected by dam constructions in India?
Which of the following is the UNESCO world heritage sites in the state of Rajasthan?
Relevant for Exams:
