Question

shakeel set up a factory by investing ₹40,000. During the first three successive years, his profits were 5%, 10% and 15% respectively. If each year the profit was on previous year's capital, calculate total profit.

Answer 1

Invstment for 1st year = 40000
Rate for 1st year =5%
Profit = (40000×5×1)/100
= 2000

Sum for 2nd year = 40000+2000= 42000
Profit for 2nd year =(42000×10×1)/100
=4200

Sum for 3rd year =42000+4200
= 46200
Profit for 3rd year = ( 46200×15×1)/100
= 6930

Total profit = 13130


This can also be done as

40000(105/100)(110/100)(115/100)
= 13130


Thank you
Hope this helps