Question 161

Mr. X invested a certain amount in Debt and Equity funds in the ratio of 4 : 5 respectively. At the end of one year, he earned a total divided by 30%on his investment. After one year he reinvested the amount including 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

Since the amount reinvested is in the ratio 6:7,

the amount reinvested in equity is $$\frac{7}{6+7}$$ of total amount.

$$\frac{7}{13}$$ x = 94500

x = 94500*13/7

Since there was a 30% profit on this amount,

Original amount = (94500*13)/(7*1.3) = 135000

Amount invested in equity =$$\frac{5}{5+4}*135000$$ = 75000

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