Question 111

Mr X invested a certain amount in Debt and equity Funds in the ratio of 4:5. At the end of one year he earned a total dividend of 30% on his investment.After one year he reinvested the amount including the dividend in the ratio of 6:7 in Debt and Equity Funds.If the amount reinvested in Equity Funds was rs 94,500,what was the original amount invested in Equity Funds ?

Solution

Let the original amount invested be x.

Hence, the amount with him after recieving the dividend is 1.3x.

Now, this amount was reinvested in ratio 6:7 in debt and equity funds. Amount invested in equity fund was 94,500

Hence, (0.7x/1.3)=94,500, x=175500

now, the original amount invested in equity was (5/9)*175500=97,500

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