Question

atulya started a business with an annual investment of RS 64,000. during the first year he incurred a loss of 4% however during second year he earned a profit of 5% which rose to 10% during third year. find the net profit earned by him at the end of 3 years?​

Answer 1

Answer:

it is given that

Investment (P) = 400000

Loss in the first year =4%

Profit in the second year = 5%

Profit in the third year = 10%

We know that

Total amount after 3 years =P(1+r/100)

n

Substituting the values

=400000(1−4/100)(1+5/100)(1+10/100)

By further calculation

=400000×24/25×21/20×11/10

=443520

So the net profit after 3 years = 443520−400000=43520