WHICH IS BETTER INVESTMENT 20%,10% or 18%,12%?

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Solution

$Suppose the initial amount before the investment is Rs 100 . Case 1 : An investment of 20 % followed by 10 % After 20 % investment, the amount becomes, 100 + 20 % of 100 = 100 + \frac{20}{100} \times 100 = 100 + 20 = 120 After 10 % investment, the final amount is, 120 + 10 % of 120 = 120 + \frac{10}{100} \times 120 = 120 + 12 = 132 Thus, the final amount is Rs 132 . Case 2 : An investment of 18 % followed by 12 % After 18 % investment, the amount becomes, 100 + 18 % of 100 = 100 + \frac{18}{100} \times 100 = 100 + 18 = 118 After 12 % investment, the final amount is, 118 + 12 % of 118 = 118 + \frac{12}{100} \times 118 = 118 + 14.16 = 132.16 Thus, the final amount iss Rs 132.16 . This shows that the second investment of 18 %, 12 % is better .$

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