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Amit invested ₹ 25,000 in a no-fee fund. After one year, the value of the fund rose to ₹ 30,000 then the nominal rate of return on the investment is

Solution

✅ Correct Option: 2

The nominal rate of return is 30000−2500025000×100=20%\frac{30000-25000}{25000}\times 100=20\%.

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