Question

Umesh set up a small factory by investing rs40,000. During the first three succesive years his profit were 5%,10% and 15% respectively. If each year the profit was on previous year's capital, calculate his total profit.

Answer 1

Umesh set up a small factory by investing rs 40,000

his profit in the first year =5%

let profit =x

then his profit in first year =

profit%=profit/investment×100%

=>5%=X/40,000×100=2,000

then his profit in second year =