Study the Pie charts given below which shows the operating profit of a business for two years. On the basis of these pie charts answer the following questions.

If on an average 20% rate of interest was charged on borrowed funds, then the total borrowed funds used by the company in the given 2 years amounted to :

Rs 515 Lakhs

From the pie charts:

1990–91

• Operating Profit = ₹130 lakh
• Interest = 30% of ₹130 lakh

$= \frac{30}{100} \times 130 = 39 \text{ lakh}$

• If the rate of interest = 20%, then borrowed funds:

$\frac{39}{0.20} = 195 \text{ lakh}$

1991–92

• Operating Profit = ₹160 lakh
• Interest = 40% of ₹160 lakh

$= \frac{40}{100} \times 160 = 64 \text{ lakh}$

• Borrowed funds:

$\frac{64}{0.20} = 320 \text{ lakh}$

Total borrowed funds in the two years

$195 + 320 = 515 \text{ lakh}$