Jitendra set up a factory by investing Rs. 2500000. During the first two successive years his profits were 5% and 10% respectively. If each year the profit was on previous year's capital, compute his total profit.
Investment in the beginning
Profit during the first 2 years =5% and 10% respectively.
∴ Investment after 2 years will be
=Rs.2500000(1+5100)(1+10100)
=Rs.2500000×2120×1110
=Rs.2887500
∴ Amount of profit
= Rs. 2887500 - Rs. 2500000
= Rs. 387500