Notice (8): Undefined variable: passageArr [APP/View/Argues/view.ctp, line 19]

If the income of Company A in 2007 and that in 2008 were equal and the amount invested in 2007 was Rs.12 lakhs, what was the amount invested in 2008?

A Rs.10, 87,500

B Rs.10, 85,700

C Rs.12, 45,000

D Rs.12, 85,000

E None of these

Solution

Correct Answer: Option A

Let IA is the investment in 2008 by A.

Profit percent of A in 2007 = 45% and in 2008 = 60%

Total income = Profit earned + Total investment in the year.

Profit earned = (Investment × Profit percentage) ÷ 100

Profit earned by A in 2007 = (12 × 45)/100 = 5.4 lakhs

Total income by A in 2007 = 5.4 + 12 = 17.4 lakhs

Profit earned by A in 2008 = (IA × 60)/100 = 0.60 × IA

Total income of A in 2008 = 1.60 × IA

Given both incomes are equal ⇒ 1.60 × IA = 17.4 lakhs

⇒ IA = 17.4/1.6 = 10.875 lakhs

∴ Investment by A in 2008 = Rs.10, 87, 500

Practice More Questions on Our App!

Download our app for free and access thousands of MCQ questions with detailed solutions