Question

Mr. sayyad kept rs. 40,000 in a bank at 8% compound interest for 2 year. mr. fernandes invested rs. 1,20,000 in a mutual fund for 2 year. after 2 year , mr. fernandes got rs. 1,92,000. whose invested turned out to be more profitable ?

Answer 1

Mr. Sayyad:-

$A=P(1+r{)}^t$

$A=40,000(1+0.08{)}^2$

$A=40000(1.08{)}^2$

$A=46656$

$CI=A-P=46656-40000$

$=6656$Rs.

Profit$\%=\frac{6656}{40000}\times 100=16.64\%$

Mr. Fernandes:-

Profit $=192000-120000$

$=72000$

Profit$\%=\frac{72000}{120000}\times 100$

$=60\%$.

Clearly, Mr. Fernandes's investment was more profitable.