Question

Ranga buys a car for Rs 1,00,000 and spends Rs 20,000 on repairs. He rents it and earns Rs 4,000 per month. After 8 months, he sells the car for Rs 1,00,000. His total earning in rupees is

• A. 15,000
• B. 18,000
• C. 20,000
• D. 12,000

Answer 1

The correct option is D 12,000

Total investment $=1,00,000+20,000=1,20,000$
His earning in 8 months $=4,000\times 8=32,000$
Total earnings $=1,00,000+32,000-1,20,000=1,32,000-1,20,000=Rs12,000$