Question

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 ?

Answer 1

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% = $\frac{90,000}{2,15,000}\times 100=41.86\%$
Mr. Ramniklal invested Rs 1,40,000
Rate of interest = 8%
Time= 2 years
CI = A $-$ P
$$\begin{gathered} =1,40,000{\left(1+\frac{8}{100}\right)}^2-1,40,000 \\ =1,40,000\left[{\left(\frac{108}{100}\right)}^2-1\right] \\ =1,40,000\times 0.1664 \\ =23,296 \end{gathered}$$
Profit% = $\frac{23296}{140000}\times 100=16.64\%$
Thus, Mr. Hiralal's investment is more profitable.