New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A person buys a piece of machinery for ₹60,000. After

    1 year, he sells it at a 15% profit and reinvests the entire amount in a new machine. The second machine appreciates by 20% over 2 years. He then sells the second machine and makes a profit of ₹10,000 on the total investment. What was the selling price of the second machine?
    A ₹80,000 Correct Answer Incorrect Answer
    B ₹84,000 Correct Answer Incorrect Answer
    C ₹90,000 Correct Answer Incorrect Answer
    D ₹95,000 Correct Answer Incorrect Answer

    Solution

    Initial investment = ₹60,000. First sale after 1 year: Profit = ₹60,000 × 15% = ₹9,000. Selling price = ₹60,000 + ₹9,000 = ₹69,000. Reinvestment in second machine = ₹69,000. Appreciation after 2 years: Appreciation = ₹69,000 × 20% = ₹13,800. New value after 2 years = ₹69,000 + ₹13,800 = ₹82,800. Profit from second sale = ₹82,800 - ₹60,000 = ₹22,800. Amount after selling second machine = ₹82,800. Profit made = ₹10,000 on total investment. Thus, the selling price of the second machine is ₹82,800. Closest option: b) ₹82,800.

    Practice Next

    Relevant for Exams: