Question 2
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An investor invested a sum of ₹ 12 lakhs in Company P in 1998. The total amount received after one year was re-invested in the same Company for one more year. The total appreciation received by the investor on his investment was?
- A ₹ 2,96,200
- B ₹ 2,42,200
- C ₹ 2,25,600 Correct
- D ₹ 2,16,000
Correct Answer: Option C
Amount received from Company P after one year (i.e., in 199) on investing ₹ 12 lakhs in it
= ₹ [12 + (8% of 12)] lakhs
= ₹ 12.96 lakhs.
Amount received from Company P after one year on investing ₹ 12.96 lakhs in the year 1999
= ₹ [12.96 + (10% of 12.96)] lakhs
= ₹ 14.256.
Appreciation received on investment during the period of two years
= ₹ (14.256 - 12) lakhs
= ₹ 2.256 lakhs
= ₹ 2,25,600.
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