Ashish started the business with an initial investment of Rs 500000. In the first year he incurred a loss of 4%. However during the second year he earned a profit of 5% which in third year rose to 10%. Calculate the net profit for the entire period of 3 years.

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Solution

$Profit for three year s = P (1 - \frac{R_{1}}{100}) (1 + \frac{R_{2}}{100}) (1 + \frac{R_{3}}{100}) \Rightarrow 500, 000 (1 - \frac{4}{100}) (1 + \frac{5}{100}) (1 + \frac{10}{100}) = 500, 000 (0.96) (1.05) (1.10) = 554, 400 Thus, the net profit is Rs 554, 400 .$

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Q. A man starts a business with a capital of Rs

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. He incurs a loss of

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Ashish started the business with an initial investment of Rs 500000. In the first year he incurred a loss of 4%. However during the second year he earned a profit of 5% which in third year rose to 10%. Calculate the net profit for the entire period of 3 years.

Profit for three years=P1-R11001+R21001+R3100⇒500,0001-41001+51001+10100=500,0000.961.051.10=554,400Thus, the net profit is Rs 554,400.

$Profit for three year s = P (1 - \frac{R_{1}}{100}) (1 + \frac{R_{2}}{100}) (1 + \frac{R_{3}}{100}) \Rightarrow 500, 000 (1 - \frac{4}{100}) (1 + \frac{5}{100}) (1 + \frac{10}{100}) = 500, 000 (0.96) (1.05) (1.10) = 554, 400 Thus, the net profit is Rs 554, 400 .$