Sign in
Please select an account to continue using cracku.in
↓ →
Eight years after completion of your MBA degree, you start a business of your own. You invest INR 30,00,000 in the business that is expected to give you a return of 6%, compounded annually. If the expected number of years by which your investment shall double is 72/r, where r is the percent interest rate, the approximate expected total value of investment (in INR) from your business 48 years later is:
Eight years after completion of your MBA degree, you start a business of your own. You invest INR 30,00,000 in the business that is expected to give you a return of 6%, compounded annually. If the expected number of years by which your investment shall double is 72/r, where r is the percent interest rate, the approximate expected total value of investment (in INR) from your business 48 years later is:
It is given that the expected number of years by which your investment shall double is 72/r, where r is the percent interest rate.
We are given that r = 6%. Therefore, it will take 72/6 = 12 years for money to grow twice of initial investment. In every 12 years, the money will become 2 fold. Therefore, in 48 years money will grow to = $$2^{48/12}$$ = 16 times.
Therefore, the approximate expected total value of investment (in INR) from your business 48 years later = 16*30,00,000 = 4,80,00,000.
Create a FREE account and get:
Book Free CAT Mentorship
Get personalized CAT strategy from a 99%iler
500+ students mentored
OTP Verification
Enter the 6-digit code sent to your phone
Booking Summary
Enter OTP
Didn't receive the OTP?
Start your IIM journey with the right preparation and crack CAT 2026.
Educational materials for CAT preparation