Question

Mr. X a businessman had the income in the year 2000, such that he earned a profit of 20% on his investment in the business. In the year 2001, his investment was less by Rs. 5000 but still had the same income (income = investment + profit ) as thus in 2000. Thus the precent profit earned in 2001 increased by 6%. What was his investment in 2000?

Answer 1

Step-by-step explanation:

Rs. 105000/-

If investment in year 1995 was Rs x, then income was 1.2 x.

then investment in year 1996 was Rs (x-5000), then income was 1.2 x.

As per given condition

( 0.2x+5000)/(x-5000)= 26

x= Rs. 105000/-