Question

Hema started a business by investing ` 2,50,000. During the first three successive

years, she earned a profit of 5%, 10% and 12% per annum respectively. If in each

year, the profit was added on the capital at the end of the previous year, calculate

her total profit after 3 year

Answer 1

Answer:

Step-by-step explanation:

Answer 2

Answer:

SOLUTION

Initial capital = Rs.2,50,000

At the end of the first year, profit obtained = 5%

ie Profit at end of first year,

P1 = (5/100)*250000

= Rs.12500

Total capital at end of first year = Initial capital + P1

= 250000 + 12500

= Rs.2,62,500

At the end of the second year, profit obtained = 10%

ie Profit at end of second year,

P2 = (10/100)*(Total capital at the end of first year)

= (10/100)*262500

= Rs.26250

Total capital at end of second year = Total capital at the end of first year + P2

= 262500 + 26250

= Rs.2,88,750

At the end of the third year, profit obtained = 12%

ie Profit at end of third year,

P3 = (12/100)*(Total capital at the end of second year)

= (12/100)*288750

= Rs.34650

Total profit after three years = Profit at the end of first year + Profit at the end of second year + Profit at the end of third year

= P1 + P2 + P3

= 12500 + 26250 + 34650

= Rs.73400

Hence, Hema's total profit after 3 years = Rs.73400