Question

The profits of a firm were Rs. 72000 in the year 2005. during the next year,it increased by 7% and it decreased by 5% in the following year. what are the profits of the firm after 2 years?

Answer 1

Given that the profit of the firm in 2005 was 72000.

Given that During the next year that means in 2006 it increased by 7%.

Profit of the firm in 2006 = 72000 + 7/100 * 72000

                                           = 77040.


Given that During the next year that means in 2007 it decreased by 5%.

Profit of the firm in 2007 = 77040 - 5/100 * 77040

                                          = 73188.


Therefore the profit of the firm after 2 years = 73188 - 72000

                                                                          = 1188.


Hope this helps!

Answer 2

year 2006=7/100X72000
=5040+72000=77040
year 2007= 5/100X77040
=77040-3602
so, decrease amount=73438