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mrs. laxmi yadav invested a certain amount ofmoney in debt and equity funds in the ratio of 4 : 5. at the end of one year, she earned a total dividend of 30% on her investment. after one year, she reinvested the amount including the dividend in the ratio of 6 : 7 in debt and equity funds. ifthe amount reinvested in equity funds was rs.94,500, what was the original amount invested in equity funds

User Josh Close
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Final answer:

Mrs. Laxmi Yadav's original investment in equity funds was Rs. 75,000, calculated by working backward from her reinvestment amount in equity funds after earning a 30% dividend.

Step-by-step explanation:

To solve the problem of how much Mrs. Laxmi Yadav originally invested in equity funds, we need to reverse-engineer the information provided. After receiving a 30% dividend on her total investment, Mrs. Yadav reinvested her funds in debt and equity again, but with a different ratio of 6:7. It is given that the amount reinvested in equity is Rs. 94,500.

Let us denote the total amount after the dividend as 'x'. Then, the amount reinvested in equity would be 7/13 of x, as the ratio of debt to equity is now 6:7. Hence, 7/13 * x = Rs. 94,500, which gives us x = Rs. 94,500 * 13/7 = Rs. 175,500. This total includes the 30% dividend. Therefore, the original amount 'y' before the dividend can be found from y * 1.30 = Rs. 175,500, yielding y = Rs. 175,500 / 1.30 = Rs. 135,000 as the total amount invested in both debt and equity before the dividend.

The original ratio of debt to equity investment was 4:5. Given that the total original amount is Rs. 135,000, the amount in equity would be 5/9 of this total because the total parts of the ratio are 4+5=9. Hence, the original investment in equity equates to Rs. 135,000 * 5/9 = Rs. 75,000.

User Ted Xu
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