Multiple choice

Mr. x invested a certain amount in Debit and Equity funds in the ratio of 4 : 5 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 invested in Equity funds was Rs 94500, what was the original amount invested in Equity Funds?

  1. Rs 75000

  2. Rs 81000

  3. Rs 60000

  4. Rs 65000

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let the initial investments be 4x in debt and 5x in equity. Total investment = 9x. After 30% dividend, new amount = 9x × 1.3 = 11.7x. This is reinvested in ratio 6:7 (total 13 parts). The equity portion is 7/13 of 11.7x = (7 × 11.7x)/13 = 6.3x. Given 6.3x = Rs 94500, we get x = 15000. Original equity investment = 5x = Rs 75000. The key is working backwards from the final equity amount through both ratio changes.