A person has invested USD 100,000 in US equities with a view of appreciation of US stock market. In next one year, his investments in US equities appreciated in value to USD120,000. The investor decided to sell off his portfolio and repatriate the capital and profits to India. At the time of investing abroad the exchange rate was 44.5 and at the time of converting USD back into INR, he received an exchange rate of 46. How much is the return on investment in USD and in INR respectively?

      A person has invested USD 100,000 in US equities with a view of appreciation of US stock market. In next one year, his investments in US equities appreciated in value to USD120,000. The investor decided to sell off his portfolio and repatriate the capital and profits to India. At the time of investing abroad the exchange rate was 44.5 and at the time of converting USD back into INR, he received an exchange rate of 46. How much is the return on investment in USD and in INR respectively?

       a) 20%, 16%  

       b) 20%, 24% 

       c) 20%, 20%  

       d) 20%, 18%  

 Explanation:

 Invested value USD 100,000 after one year value USD 120000

 Return on investment USD 120,000- USD 100,000= 20000,

 % Return: 20000*100/10000= 20%

 At time of investing abroad value 44.50*100,000= Rs 4450000

 At the time of converting value 46*120,000= Rs 5520000

 Return on investment 5520000-4450000= Rs 1070000

 % Return: 1070000*100/4450000= 24%