Mr. Rajan invested Rs 1,00,000 in US Stock Markets when the GBPINR rate was 75. After one year his investment appreciated by 20% in GBP terms. He sold of his investments and repatriated the money to India at the then existing rate of 80. what was real returns in INR?

Money invested by Rajan before 1 year was = Rs. 100000

Money in UK pounds @ 75 is = 100000/75 = 1333.33 Pounds

Now, after 1 year invested amount was appreciated by 20%

=> 20% of 1333.33 = 266.66

Total investment becomes = 1333.33 + 266.66 = 1600 Pounds

This 1600 Pounds @ Indian currency at 80 = 1600 x 80 = Rs. 1,28,000

Hence, Rajan's investment of Rs. 1,00,000 becomes Rs. 1,28,000 in 1 year

Therefore, his profit % = [(128000 - 100000)/100000] x 100 = 28%.