Question

12. An investment of R40,000 suffered a loss of 5% for two consecutive years before gaining at 10% p.a. thereafter. Find the value of the investment3 years later.​

Answer 1

Answer:

39,710

Step-by-step explanation:

5% loss will causes the decrease in value to 38,000

Next year 5% loss causes the decrease in value to 36,100

10% increase in the value results in Rs 39,710

Answer 2

Answer:

39710

Step-by-step explanation:

Investment after loss of 5% for two consecutive years

An investment =40000=100%

Investment After first year = 100%-5%=95% of total investment = 40000×95/100 = 38000

Investment After second year = 95% of investment After first year = 38000×95/100 = 36100

Investment After Third year = 110% of investment After second year = 36100×110/100 = 39710