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Question

Mr. Trivedi invested ₹4,00,000 in an industry. After 2 years he received ₹5,20,000 from the industry. Putting aside the original investment, he invested the gains in mutual funds and in shares in the ratio 3:2. How much amount did he invest in each of the schemes?

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Solution

Profit he received =>
5,20,000 - 4,00,000 = Rs. 1,20,000

Given ratio of Investment in Mutual Funds to that of shares = 3:2

Take Investment in Mutual funds to be 3x and in shares to be 2x

Therefore Amount invested in Mutual Funds by Proportionality Theorem = 3x/(3x+2x) * 1,20,000
= 3/5 * 1,20,000
= Rs. 72,000
Therefore Amount invested in Shares = 1,20,000 - 72,000 = Rs.48,000

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