Question

Kapil set up a factory by investing Rs. 2,00,000. During the first three years, his profits were 4%, 5% and 10% respectively. If each year the profit was on previous year's capital, calculate his total profit.​

Answer 1

Answer:

here is the answer

Step-by-step explanation:

It is given that 

Investment = 2500000

Rates of profit during first two years = 5% and 10% 

We know that 

Capital after two years (A) = P(1=r/100)n

Substituting the values 

=2500000(1+5/100)(1+10/100)

By further calculation 

=2500000×21/20×11/10

=2887500

So the net profit = A - P

Substituting the values 

=2887500−2500000

= 387500

I hope this helps you

Answer 2

Answer:

after 1 st year his profit Rs 2,00,000×4/100

=Rs 8000

after 1st year capital Rs (2,00,000+8000)

=Rs2,08,000

after 2 nd year his profit Rs 2,08,000×5/100

=Rs 10,400

after 2nd year capital Rs (2,08,000+10,400)

=Rs 2,18,400

after 3 rd year his profit Rs 2,18,400×10/100

=Rs 21,840

so total profit

Rs (8000+10,400+21,840)

=Rs 40,240