Directions (1 - 5): Study the chart and answer the questions:
If on an average, 20% rate of interest was charged on borrowed funds, then the total borrowed funds used by this company is the given 2 yr amounted to
A. Rs 221 lakh
B. Rs 195 lakh
C. Rs 368 lakh
D. Rs 515 lakh
Answer: Option D
Solution (By Examveda Team)
Total interest= (30% of 130) + (40% of 160)
= 39 + 64
= Rs. 103 lakh
Given that,
This interest is calculated on 20% of borrowed fund.
Hence, borrowed funds
= $$\frac{103\times100}{20}$$
= Rs 515 lakh
This Question Belongs to Data Interpretation >> Pie Chart
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From 1990 - 91 : Interest is 39 lakhs
From 1991 - 92 : Interest is 64 lakhs
So, Total interest in 2 years is 39 + 64 = 103 lakhs
Now, it is mentioned in the question that interest was calculated on 20% of borrowed fund.
So, 20% of borrowed fund = 103 lakhs
And, Borrowed fund = (103 × 100) / 20 = 515 lakhs
From 1990 - 91 : Interest is 39 lakhs
From 1991 - 92 : Interest is 64 lakhs
So, Total interest in 2 years is 39 + 64 = 103 lakhs
Now, it is mentioned in the question that interest is calculated on 20% of borrowed fund.
So, 20% of borrowed fund = 103 lakhs
And borrowed fund = (103 × 100) / 20 = 515 lakhs
Why have they taken the reciprocal of 20% ? And instead of doing this 103×20÷100 why have they done this way 103×100÷20 ??