Aman started a factory with an initial investment of Rs. 100000. In the first year, he incurred a loss of $5 %$ . However, during the second year, he earned a profit of $10 %$ which in the third year rose to $12 %$ . Calculate his net profit for the entire period of three years.

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Solution

Initial investment = Rs. 100000
Loss in the first year $= 5 %$
Profit in the second year $= 10 %$
Profit in the third year $= 12 %$
$∴$ Investment at the end of 3 years
$= R s . 100000 (1 - \frac{5}{100}) (1 + \frac{10}{100}) (1 + \frac{12}{100})$
$= R s . 100000 \times \frac{19}{20} \times \frac{11}{10} \times \frac{28}{25} = R s . 117040$
$∴$ Net profit $= R s . 117040 - 100000$
$= R s . 17040$

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Aman started a factory with an initial investment of Rs. 100000. In the first year, he incurred a loss of 5%. However, during the second year, he earned a profit of 10% which in the third year rose to 12%. Calculate his net profit for the entire period of three years.

Initial investment = Rs. 100000 Loss in the first year =5% Profit in the second year =10% Profit in the third year =12% ∴ Investment at the end of 3 years =Rs.100000(1−5100)(1+10100)(1+12100) =Rs.100000×1920×1110×2825=Rs.117040 ∴ Net profit =Rs.117040−100000 =Rs.17040

Aman started a factory with an initial investment of Rs. 100000. In the first year, he incurred a loss of $5 %$ . However, during the second year, he earned a profit of $10 %$ which in the third year rose to $12 %$ . Calculate his net profit for the entire period of three years.