Question

If the total investment other than by FII and corporate houses is Rs 335000 crore, then the investment by NRIs and Offshore funds will be (approximately)?

A) 274,100
B) 285,600
C) 293,000
D) Cannot be determined

Answer 1

Hint: In this question we need to note that we have not been given the total investment. We can see that we have instead been given total investment apart from FII and corporate houses. So when we start such a question, to avoid confusion first we will convert this sentence into a mathematical form. Let us assume Total investment as x. Thus all the other investments can be represented as percentages of x. We can write Total investment other than FII and corporate houses as \[x - \dfrac{{33}}{{100}}x - \dfrac{{34}}{{100}}x = 0.33x\]. We have been given the value of Total investment other than FII and corporate houses in the question as 335000 crores. So we will equate the two to get the equation
\[0.33x = 335000\] which will give us the value of x i.e. total investment. Once we get the total investment, we know the other investments in the pie chart are expressed as the percentage of total which are given in the question. We know the investment by NRI and offshore funds which are given as 16% and 11% of x respectively. So we will then calculate the investment of both by adding them which will give us the equation \[\dfrac{{16 + 11}}{{100}} \times x\,i.e\,\dfrac{{27}}{{100}} \times x\]. As we have calculated x earlier we will substitute the value to get the required investment by NRIs and Offshore funds.

Complete step by step answer:
Let us start with the given statement.
We know that total investment other than by FII and corporate houses is Rs 335000 crore.
This means that Total investment- FII-Corporate houses=335000 . . . . . . . (1)
In the pie chart we have been given all the investments as a percentage of the total investment. So we can express all investments as a percentage of the total.
However as we do not have the value of total investment, we will assume it to be x.
So, if total investment = x
Then we will get,
Investment by FII = 33% of x
\[
   = \dfrac{{33}}{{100}}x \\
   = 0.33x \\
\]
Investment by Corporate houses = 34% of x
\[
   = \dfrac{{34}}{{100}}x \\
   = 0.34x \\
\]
Let us substitute these values in equation (1)
\[
  x - 0.33x - 0.34x = 335000 \\
  x - 0.67x = 335000 \\
  0.33x = 335000 \\
  x = \dfrac{{335000}}{{0.33}} \\
\]
We will not simplify the value as we have to use this value of x for further calculation. We will save time and reduce complexity by keeping this value of x as it is.
Now, we need to find the investment NRIs and Offshore funds together.
As discussed above, from the pie chart we can see that investment by NRIs and Offshore funds have been given as percentages of the total investment.
Investment by NRIs = 11% of x
Investment by Offshore funds = 16% of x
Therefore we get,
 Investment by NRIs and Offshore funds=16+11=27% of x.
Now we will substitute the value of x which we calculated in the above equation.
Investment by NRIs and Offshore funds
\[
   = \dfrac{{27}}{{100}} \times \dfrac{{335000 \times 100}}{{33}} \\
   = \dfrac{9}{{11}} \times 335000 \\
\]
\[ = 274090\] (approximately)
Hence investment by NRIs and Offshore funds is RS 274090 crores.

So, the correct answer is “Option A”.

Note: We need to read the question properly to understand that the given amount Rs 335000 crores is not the total investment but it is given total investment apart from FII and corporate houses. Also we should observe that each investment is a percentage of total investment and hence we need to find the total investment by using the information given to us. It is a best practice to always convert given information in mathematical equations to understand and solve the problem accurately. Also we need to keep in mind that as we are going to use the total investment value in another calculation, we need not simplify it to the exact term. This will save solving time and avoid confusion.