# Mr. Hiralal Invested Rs. 2,15,000 in a Mutual Fund. - Algebra

Sum

Mr. Hiralal invested Rs. 2,15,000 in a Mutual Fund. He got Rs. 3,05,000 after 2 years. Mr. Ramniklal invested Rs. 1,40,000 at 8% compound interest for 2 years in a bank. Find out the percent gain of each of them. Whose investment was more profitable ?

#### Solution

Mr. Hiralal's investment = Rs 2,15,000
Return of investment = Rs 3,05,000
Profit = 3,05,000 - 2,15,000 = Rs 90,000
Profit % =  (90,000) / (215,000) x 100 = 41.86%
Mr. Ramniklal invested Rs 1,40,000
Rate of interest = 8%
Time= 2 years
CI = A - P
=140,000 ( 1 + 8/100 )^2 - 140,000
= 140,000 [ ( 108 / 100)^2 - 1]
= 140,000 x 0.1664
= 23,296

Profit% = ( 23296) / ( 140000) x 100 = 16.64%
Thus, Mr. Hiralal's investment is more profitable.

Concept: Saving and Investment
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#### APPEARS IN

Balbharati Mathematics 1 Algebra 9th Standard Maharashtra State Board
Chapter 6 Financial Planning
Problem Set 6 | Q 3 | Page 107