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Michael Bolton has $90,000 with him. He purchases a car, a laptop and a flat for $15,000, $13,000 and $35,000 respectively and puts the remaining money in a bank deposit that pays compound interest @15% per annum. After 2 years, he sells off the three items at 80% of their original price and also withdraws his entire money from the bank by closing the account. What is the total change in his asset? (a) -4.5% (c) -4.32% (b) 3.5% (d) 5.5% I need a detailed solution please.?
Most Upvoted Answer
Michael Bolton has $90,000 with him. He purchases a car, a laptop and ...
Solution:

Initial Assets:

Car = $15,000
Laptop = $13,000
Flat = $35,000
Cash = $27,000 ($90,000 - $15,000 - $13,000 - $35,000)

Total = $90,000

Assets after Selling:

Car = $15,000 x 0.8 = $12,000
Laptop = $13,000 x 0.8 = $10,400
Flat = $35,000 x 0.8 = $28,000
Cash = $27,000 x (1 + 0.15/2)^4 = $36,562.50

Total = $86,962.50

Change in Assets:

Total Change = (Total Assets after Selling - Total Initial Assets)/Total Initial Assets x 100%
= ($86,962.50 - $90,000)/$90,000 x 100%
= -4.53%

Answer: (a) -4.5%
Community Answer
Michael Bolton has $90,000 with him. He purchases a car, a laptop and ...
Answer (c) -4.32%
sol : remaining amt after purchasing car , laptop and flat is RS 27000 .
after 2 yrs , it becomes rs 35707 .
selling price of 3 items = (15000+13000+35000)*80% = 50400
total = 50400+35707 = 86107
total change in asset (86107 - 90000)/90000
= - 4.32%
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Michael Bolton has $90,000 with him. He purchases a car, a laptop and a flat for $15,000, $13,000 and $35,000 respectively and puts the remaining money in a bank deposit that pays compound interest @15% per annum. After 2 years, he sells off the three items at 80% of their original price and also withdraws his entire money from the bank by closing the account. What is the total change in his asset? (a) -4.5% (c) -4.32% (b) 3.5% (d) 5.5% I need a detailed solution please.?
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Michael Bolton has $90,000 with him. He purchases a car, a laptop and a flat for $15,000, $13,000 and $35,000 respectively and puts the remaining money in a bank deposit that pays compound interest @15% per annum. After 2 years, he sells off the three items at 80% of their original price and also withdraws his entire money from the bank by closing the account. What is the total change in his asset? (a) -4.5% (c) -4.32% (b) 3.5% (d) 5.5% I need a detailed solution please.? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Michael Bolton has $90,000 with him. He purchases a car, a laptop and a flat for $15,000, $13,000 and $35,000 respectively and puts the remaining money in a bank deposit that pays compound interest @15% per annum. After 2 years, he sells off the three items at 80% of their original price and also withdraws his entire money from the bank by closing the account. What is the total change in his asset? (a) -4.5% (c) -4.32% (b) 3.5% (d) 5.5% I need a detailed solution please.? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Michael Bolton has $90,000 with him. He purchases a car, a laptop and a flat for $15,000, $13,000 and $35,000 respectively and puts the remaining money in a bank deposit that pays compound interest @15% per annum. After 2 years, he sells off the three items at 80% of their original price and also withdraws his entire money from the bank by closing the account. What is the total change in his asset? (a) -4.5% (c) -4.32% (b) 3.5% (d) 5.5% I need a detailed solution please.?.
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