Question 123

# Three years ago, your close friend had won a lottery of Rs. 1 crore. He purchased a flat for Rs. 40 lakhs, a car for Rs. 20 lakhs and shares worth Rs. 10 lakhs. He put the remaining money in a bank deposit that pays compound interest @ 12 percent per annum. If today, he sells off the flat, the car and the shares at certain percentage of their original value and withdraws his entire money from the bank, the total gain in his assets is 5%. The closest approximate percentage of the original value at which he sold off the three items is

Solution

Hi total gain = 5%
Thus, the amount at the end of 3 years = 105 lakh Rupees
The amount he gets from the bank = $$30(1.12)^3 = 42.14784$$ lakh rupees
Let x be the percentage at which he sells the assets of worth 70 lakhs
Thus, the amount he gets = 0.7x lakhs
Thus, 70x + 42.1478 = 105
Thus, 70x = 62.8525
Thus, x is closest to 0.90= 90%
Hence, option C is the correct answer.