Multiple choice

Sumit has Rs. 90,000 with him. He purchases three items A, B, and C for Rs. 15,000, Rs. 13,000, and Rs. 35,000 respectively and puts the remaining money in a bank deposit that pays compound interest @15% per annum. After 2 years, he sells off the three items at 80% of their original price and also withdraws his entire money from the bank by closing the account. What is the total change in his asset?

  1. -4.152%

  2. +3.152%

  3. -4.325%

  4. +5.552%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Initial assets: 90,000. Spent: 15k+13k+35k = 63k. Remaining in bank: 27k. After 2 years, bank money = 27000 * (1.15)^2 = 27000 * 1.3225 = 35707.5. Items sold at 80%: 63000 * 0.8 = 50400. Total final assets = 35707.5 + 50400 = 86107.5. Change = 86107.5 - 90000 = -3892.5. Percentage change = -3892.5 / 90000 = -4.325%.

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