Question

Sumit borrowed a capital of Rs. 50,000 to start his food products business. In the first year
he suffered a loss of 20%. He invested the remaining capital in a new sweets business and
made a profit of 5%. How much was his profit or loss computed on his original capital ?​

Answer 1

Answer:

Given,

Money spent by sumit to borrow capital =50,000 Rs.

Loss suffered by sumit in first year=20%

$= \frac{20}{100} \times 50000$

$= 20 \times 500$

$= 10000$

Loss suffered by sumit = 10,000

Remaining capital = 50,000 - 10,000 = 40,000

Remaining capital = 40,000

He uses this capital in sweet business & earns a profit of 5%

$\pink{profit = \frac{5}{100} \times 40000}$

$\pink{profit = 5 \times 400}$

$\pink{profit = 2000}$

Total amount now sumit have=40,000+2000 =42000 Rs.

Net loss of sumit=50,000−42,000 =8000 Rs.

$loss\% = \frac{8000}{50000} \times 100$

$loss \% = \frac{8}{5} \times 10$

$loss\% = \frac{80}{5}$

$loss\% = 16\%$