Question

3) Farhan started his business by investing Rs.75.000. In the first year be made
a profit of 20%. He invested the total capital in a new business and made a loss
of 12%. How much was his profit or loss computed on his original capital?
​

Answer 1

Answer:

Money spent by sumit to borrow capital =50,000 Rs.

Loss suffered by sumit in first year=20%

=

100

20

×50,000

The loss suffered by sumit=10,000 Rs.

Remaining capital=50,000−10,000=40,000 Rs.

He uses this capital in sweet business & earns a profit of 5%

Profit=

100

5

×40,000

Profit=2,000 Rs.

Total amount now sumit have=40,000+2000

=42000 Rs.

Net loss of sumit=50,000−42,000

=8000 Rs.

Loss %=

50,000

8000

×100=16%