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.

Create a FREE account and get:

- All Quant Formulas and shortcuts PDF
**40+**previous papers with solutions PDF- Top 500 MBA exam Solved Questions for Free

Comments