A person invests 35% of his income in mutual funds, 25% in fixed deposits, and the rest in recurring deposits. After 2 years, the mutual funds grow by 20%, fixed deposits by 10%, and recurring deposits by 15%. If his total income is ₹1,60,000, what is the total percentage return on his entire investment portfolio after 2 years?
Show answer & explanation
Correct answer: A
Explanation
Given:
Total Income = ₹160,000
Mutual Fund = 35% (Growth 20%)
Fixed Deposit = 25% (Growth 10%)
Recurring Deposit = Remaining 40% (Growth 15%)
Formula:
Return = Investment × Growth Percentage / 100
Mutual Fund Investment = 35% × 160,000 = 56,000
Profit = 56,000 × 20 / 100 = 11,200
Fixed Deposit Investment = 25% × 160,000 = 40,000
Profit = 40,000 × 10 / 100 = 4,000
Recurring Deposit Investment = 40% × 160,000 = 64,000
Profit = 64,000 × 15 / 100 = 9600
Total profit = 11200 + 4000 + 9600 = 24800
Total percentage return = (24800 / 160000) × 100 = 15.5%