Shortcut Trick
Bank's earning rate from the stock market = (30,000 ÷ 3,00,000) × 100 = 10%
Interest rate paid to depositors = 6%
Net profit margin for the bank = 10% − 6% = 4%
Final earnings of the bank = 4% of 60,00,000
Final earnings = (4 ÷ 100) × 60,00,000 = ₹2,40,000
∴ The correct answer is ₹2,40,000.
Alternate Method
Given:
Total amount deposited in the bank = ₹60,00,000
Interest given on deposited amount = 6%
Earnings from stock market = ₹30,000 for every ₹3,00,000
Calculations:
⇒ Total interest paid to depositors = 6% of ₹60,00,000
⇒ Total interest paid = (6 ÷ 100) × 60,00,000 = ₹3,60,000
⇒ Total money invested in the stock market by the bank = ₹60,00,000
⇒ Bank's total earnings from the market = (60,00,000 ÷ 3,00,000) × 30,000
⇒ Bank's total earnings = 20 × 30,000 = ₹6,00,000
⇒ Final earnings of the bank = Earnings from stock market − Interest paid to depositors
⇒ Final earnings = 6,00,000 − 3,60,000 = ₹2,40,000
∴ The correct answer is ₹2,40,000.
Additional Information
Return on Investment (ROI)
ROI is a performance measure used to evaluate the efficiency of an investment. Formula: ROI = (Net Profit ÷ Cost of Investment) × 100.
Net Yield / Margin
It represents the core difference between the rate an institution earns on investments and the rate it pays on its obligations. Net Margin = Earning Rate − Borrowing Rate.
Simple Percentage Computation
When base values are uniform throughout the problem, percentages can be subtracted directly to calculate final absolute differences (e.g., 10% − 6% = 4% on the common base).