A person invested ₹2,50,000 in a fund. At the end of the year, the value of the fund is ₹3,00,000. If the market price is the same at the end of the year, then the nominal rate of return is

20%

The correct answer is Option (3) → 20%

Given:

Initial investment $P = 2,50,000$, final value $A = 3,00,000$

Nominal rate of return (NRR) formula: $r = \frac{A - P}{P} \times 100$

$r = \frac{3,00,000 - 2,50,000}{2,50,000} \times 100 = \frac{50,000}{2,50,000} \times 100 = 20\%$