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A company’s CEO discusses the fund allocation with the CFO. This year the fund for new product development has increased by one third of the fund allocated last year. Last year, Rs. 20,00,000 were allotted for various activities including product development that amounts to 30% of the activities. How much money is the CFO allocating for product development this year?

A company’s CEO discusses the fund allocation with the CFO. This year the fund for new product development has increased by one third of the fund allocated last year. Last year, Rs. 20,00,000 were allotted for various activities including product development that amounts to 30% of the activities. How much money is the CFO allocating for product development this year? Correct Answer Rs. 8,00,000

Total allotted fund last year was = Rs. 20,00,000

Allotted fund for development last year was = Rs. 20,00,000 × (30/100) = 6,00,000

Allotted fund for development for current year is = 60,00,00 × (4/3) = Rs. 8,00,000

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