Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects
0 reads0 ratings0 helpful

If average profit is rupees eight lakh and capital is rupees fifty lakh what is the actual rate of return?

Answer and explanation

Correct answer: Sixteen percent

The governing concept is the actual rate of return, calculated by dividing average profit by capital employed and multiplying the result by 100. Here, average profit is ₹8,00,000 and capital is ₹50,00,000. Therefore, actual rate of return = (₹8,00,000 ÷ ₹50,00,000) × 100 = 0.16 × 100 = 16%. Hence option C, sixteen percent, is correct. A rate of 12% would imply profit of only ₹6,00,000 on the same capital, while 14% would not follow from the given figures. A rate of 20% would require ₹10,00,000 profit. Both amounts must be expressed in the same units before division, although the common lakh unit already makes the calculation straightforward.

Related tags

Actual Rate Of ReturnCapital EmployedGoodwill ValuationAccountancyGoodwillPartnership Accounts Basic ConceptsClass 12 Mcq

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.