Ramesh invested a certain amount in Debit and Equity Funds in the ratio of 5 : 4 respectively. At the end of one year, he earned a total dividend of 30% on his investment. After one year he reinvested the amount including dividend in the ratio of 6 : 7 in Debit and Equity Funds. If the amount reinvested in Equity Funds was Rs. 97,650, what was the original amount invested in Equity Funds?
Solution
Correct Answer: Option A
∵ the amount invested in Debit and Equity funds is in a ratio 5 : 4,
Amount invested in Debit = 500x
Amount invested in Equity = 400x
Total invested amount = 900x
According to the question,
He earned a total dividend of 30% on his investment.
Earning as dividend = 30% of 900x = 270x
Given that, Ramesh reinvested including dividend in the ratio of 6 : 7 in Debit and Equity fund.
∴ Total amount of money reinvested = 900x + 270x = 1170x
Now, the ratio of amount invested in Debit and Equity is 6 : 7.
∴ Amount invested in Debit \(= \frac{6}{{6 + 7}} \times 1170x = \;\frac{{6 \times 1170x}}{{13}} = 540x\)
Amount invested in Equity = 1170x – 540x = 630x
Given in question that, the amount reinvested in Equity Funds was Rs.97,650.
So, 630x = 97650
∴ Original amount invested in equity funds = 400x \(= \frac{{97650}}{{630}} \times 400 = 62000\)
∴ Original amount invested in Equity was Rs. 62000.
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