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Sum

The market value of a mutual fund is 400 crore rupees. Which is divided into 8 crore units.

(a) Suppose you invest Rs. 10,000 in the units, how many units will you get ?

(b) While selling the units if their market value is increased by 10%, how much amount will you get by selling them ?

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#### Solution

The price of one unit =`(400 " crore")/(8 " crore")= RS . 50`

(a) No. of units by investing RS . 10,000 =`(10,000 ) /50 `= 200

(b) If the market value is increased by 10% by selling one unit, the profit will be 5

`50 × 10/100 = RS. 5`

market value is increased by 10%

So 10% of 50 will be rs 5 and 50 + 5 = rs 55

The amount by selling we get is 200 x 55 which is equal to Rs 11,000

∴ By selling 200 units, the profit will be 200 × 55 = RS . 11, 000.

Concept: Mutual Fund - MF

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