Eight years after completion of your MBA degree, you start a business of your own. You invest INR 30,00,000 in the business that is expected to give you a return of 6%, compounded annually. If the expected number of years by which your investment shall double is 72/r, where r is the percent interest rate, the approximate expected total value of investment (in INR) from your business 48 years later is:
Explanation:
Investment doubles in 72/6 = 12 years
So, in 48 (=12 × 4) years, the investment becomes 24 times.
∴ The approximate total value of the investment (in INR)
= 16 × 3000000 = 4,80,00,000
Hence, option (c).
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