Explanation of DILR Q3

Asked by Joy on 2026-07-26 in CAT Prep

The question goes as "An investor divides Rs 8,00,000 among equity, debt and cash. The cash amount equals 25% of the debt amount. Over the year, the equity holding first rose 30% and then fell 10%, ending at Rs 3,51,000. What is the amount invested in debt?"
The first step in the solution is the change in the percentage of equity. Can anyone please help me understand the solution?

3 Answers

Swalih · 2026-07-26 · 2 helpful

if you want faster response its better to ask in chatgpt or claude especially if it's about numbers

Shobhit Singh · 2026-07-26 · 2 helpful

Very easy if you go step by step.
It's mentioned that cash = 25% of debt amount, which give us cash:debt as 1:4
Now we have the final value of equity as 351000. Which is after 10% fall and 30% rise.
So 351000 is 90% so 100% percent is 390000 and the initial amount was 300000 as 30% rise in that made it 390000.
Now we have equity as 300000 at the start. So cash + debt is 500000. In which cash :debt is 1:4
Giving us final values. Equity= 300000, cash = 100000, debt= 400000

(Correct me if I'm wrong)

Lakshya Bohra · 2026-07-26 · 2 helpful

See!
The amount invested in equity has risen by 30% and then fallen by 10%; that means you have to find out how much amount initially has been invested in equity out of a total of 8,00,000

Step 1 - 3,51,000 * 10/9 = 3,90,000
(Because fallen by 10%)

Step 2 - 3,90,000 * 100/130 = 3,00,000

So, a total of 3 lakh is invested in equity from the total 8 lakh.
Hence, the answer will be
EQUITY = 3,00,000
DEBT = 4,00,000
Cash = 1,00,000

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