Match the LIST-I with LIST-II
| LIST-I | LIST-II | ||
| (Financial data) | (Nominal rate of return) | ||
| A. | Original investment value = Rs. 3,50,000; Current market value of investment = Rs. 4,37,500 | I. | 66.66 % |
| B. | Original investment value = Rs. 2,50,000; Current market value of investment = Rs. 3,25,000 | II. | 33.33 % |
| C. | Original investment value = Rs. 3,00,000; Current market value of investment = Rs. 4,00,000 | III. | 30 % |
| D. | Original investment value = Rs. 3,00,000; Current market value of investment = Rs. 5,00,000 | IV. | 25 % |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A-IV, B-III, C-II, D-I
The nominal rate of return is the gain as a percentage of the original investment:
\( \displaystyle \text{Nominal rate of return}=\frac{\text{Current market value}-\text{Original investment}}{\text{Original investment}}\times 100 \)
A. Original investment value = Rs. 3,50,000; Current market value of investment = Rs. 4,37,500
This matches IV. 25 %.
\( \displaystyle \frac{437500-350000}{350000}\times 100 \)
\( \displaystyle =\frac{87500}{350000}\times 100 \)
\( \displaystyle =25\% \)
B. Original investment value = Rs. 2,50,000; Current market value of investment = Rs. 3,25,000
This matches III. 30 %.
\( \displaystyle \frac{75000}{250000}\times 100=30\% \)
C. Original investment value = Rs. 3,00,000; Current market value of investment = Rs. 4,00,000
This matches II. 33.33 %.
\( \displaystyle \frac{100000}{300000}\times 100=33.33\% \)
D. Original investment value = Rs. 3,00,000; Current market value of investment = Rs. 5,00,000
This matches I. 66.66 %.
\( \displaystyle \frac{200000}{300000}\times 100=66.66\ldots\% \)
So the matching is A-IV, B-III, C-II, D-I.