Question

Raj invested ₹ 10000 in a fund. At the end of first year, he incurred a loss but his balance was more than ₹ 5000. This balance, when invested for another year, grew and the percentage of growth in the second year was five times the percentage of loss in the first year. If the gain of Raj from the initial investment over the two year period is 35%, then the percentage of loss in the first year is

• A. 15
• B. 5
• C. 10
• D. 70

Answer 1

Answer: (C)

10

Answer 2

The equation $10000 - 100x + 500x - 5x^2$

= 13500 can be solved to find its roots, which are x = 10 and x = 70.

Since x is less than 50, it can be concluded that x equals 10 percent.