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Question

What is the percentage of the initial funds in debt-based mutual funds that has been invested at the end of year 2005 by the investor in debt-based mutual funds?

A
140%
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B
180%
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C
133.16%
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D
None of these
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Solution

The correct option is B 180%
The closing value of the debt-based mutual funds at the end of the year 2005 will be given by: Starting value + Return for the year — Withdrawal for the year. This value comes to 772,300 at the end of the year 2005. However, the stating value of 2006 is 2,572,300. This means that there must be an increment of 1,800,000 at the end of the year 2005.

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