GATE DS&AI 2024 | GA Question: 8

Question

​​​​​Person $1$ and Person $2$ invest in three mutual funds $\text{A, B}$, and $\text{C}$. The amounts they invest in each of these mutual funds are given in the table.

\begin{array}{|c|c|c|c|}
\hline & \text{Mutual fund A} & \text{Mutual fund B} & \text{Mutual fund C} \\
\hline \text{Person} 1 & 10,000 & 20,000 & 20,000 \\
\hline \text{Person} 2 & 20,000 & 15,000 & 15,000 \\
\hline
\end{array}

At the end of one year, the total amount that Person $1$ gets is ₹$500$ more than Person $2$. The annual rate of return for the mutual funds $\text{B}$ and $\mathrm{C}$ is $15 \%$ each. What is the annual rate of return for the mutual fund $\mathrm{A}$?

• A. $7.5 \%$
• B. $10 \%$
• C. $15 \%$
• D. $20 \%$

Answer 1

Answer - B

Answer 2

For MF B and C 
P1 invests 40k @ 15%
P2 invests 30k @ 15% Here P1 exceeds P2 by 11500
but after Involving all MFs B, C, and A; P1 exceeds P2 by 500

So, Diff in Return of MF A is 11000 which is equal to (20k -10k) * x / 100
x = 100* 11000 / 10k
x = 110; Rate will be 10%