Question

ashish open a bookshop with an initial investment of rs.32000. in the first year,he incurred a loss of 5%. however during the second year he earned a profit of 10% which in the third year rose to 12 1/2%.calculate the net profit for the entire period of three years

Answer 1

I hope it would help you.

Answer 2

ashish open a bookshop with an initial investment of rs.32000. in the first year,he incurred a loss of 5%. however during the second year he earned a profit of 10% which in the third year rose to 12 1/2%.The net profit for the entire period of three years is Rs 5620

Initial investment (Cost Price) = Rs 32000

After 1st year,

5% loss is suffered.

So, the Selling Price would have been = (100-5)% on Rs 32000

= 95% on Rs 32000

= Rs 30400

After 2nd year,

10% profit is earned.

So, the Selling Price would be = (100+10)% on Rs 30400

= 110% on Rs 30400

= Rs 33440

After 3rd year,

12.5% profit is earned.

So, the Selling Price would be = (100+12.5)% on Rs 33440

= 112.5% on Rs 33440

= Rs 37620

Thus the profit earned = SP - CP = Rs (37620 - 32000)

= Rs 5620

So, thenet profit earned in a period of 3years is Rs 5620