Practicing Success
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 221 Lakhs Rs 195 Lakhs Rs 368 lakhs Rs 515 Lakhs |
Rs 515 Lakhs |
As calculated in the previous question, total interest = (39 + 64) = Rs 103 lakh Given that, this interest is calculated on 20% of the borrowed fund.Hence, borrowed funds = \(\frac{103 × 100}{20}\) = Rs 515 lakh. |