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Harish invested ₹ 40,000 in a no-fee fund. After one year, the value of the fund rose to ₹ 60,000 then the nominal rate of return on the investment is

Solution

✅ Correct Option: 2

Gain =60000−40000=₹20000= 60000-40000 = ₹20000.

Nominal rate of return =2000040000×100=50%= \dfrac{20000}{40000}\times100 = 50\%.

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