Question

Sahiba has a boutique in Nagpur, which she started in 2020. She had invested ₹ 2,00,000 from her savings and borrowed ₹ 3,00,000 from the bank @ 10% per annum. She made a net profit of ₹ 50,000 in the year 2021-2022.

In the above case the 'Return on Equity' is ______.

विकल्प

• 10%

• 20%

• 25%

• 40%

Answer 1

In the above case the 'Return on Equity' is 25%.

Explanation:

`50000/200000xx100`

= 25%