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Quantitative Aptitude

Logical Reasoning

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Example 9: Investments and returns

Last Updated On: Fri Aug 28 2026

Caselet

Rohan invested $50,000 in three schemes: 40% in bonds, 35% in stocks, and the rest in fixed deposits. The yearly returns were 6% on bonds, 10% on stocks, and 5% on fixed deposits.

Question

What was Rohan's total yearly return, and what was the overall rate of return?

Table built from the caselet

Investment and yearly return ($)
SchemeInvestedRateReturn
Bonds200006%1200
Stocks1750010%1750
Fixed deposits125005%625
Total50000-3575

Solution

  1. Bonds = 40% of 50,000 = 20,000; stocks = 35% = 17,500; fixed deposits = 25% = 12,500.
  2. Returns: 6% of 20,000 = 1,200; 10% of 17,500 = 1,750; 5% of 12,500 = 625.
  3. Total return = 1,200 + 1,750 + 625 = $3,575.
  4. Overall rate = 3,575 / 50,000 x 100 = 7.15%.
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