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Average profit is Rs 1,00,000 at a 10% normal rate. What is capitalised value?
ARs 1,00,000
BRs 1,10,000
CRs 10,000
DRs 10,00,000
Answer & Solution
Correct answer: D. Rs 10,00,000
Capitalised value is average profit times 100 divided by the normal rate: 1,00,000 times 100 over 10 is 10,00,000.
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