A man P purchased land for ₹4,32,000 on the outskirts of a city. Due to some reason, its value depreciated at 25% per annum and he sold it to Q after 2 years. At this time, the city expanded and new projects of infrastructures started coming up. As a result of the expansion, there was an appreciation of real estate prices at the rate of 50%. What would be the value (in ₹) of the land after 2 years, from the time Q bought the land from P?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. RS. 5,46,750
Cost price for Q = 432000 × ×
= 2,43,000
Cost of plot after 2 years from it
= 243000 × ×
= 5,46,750