Question

Mr. X, a business man had the income in the year $2000$, such that he earned a profit of $20$% n his investment in the business. In the year $2001$, his investment was less by Rs. $5000$ but still had the same income (Income=Investment+Profit) as that in $2000$. Thus, the percent profit earned in $2001$ increased by $6$%. What was his investment in $2000$?

• A. Rs. $1,02,000$
• B. Rs. $1,05,000$
• C. Rs. $1,50,500$
• D. Data inadequate
• E. None of these

Answer 1

The correct option is B Rs. $1,05,000$

Let investment of Mr. X be 'I' in $2000$

Profit in year $2000=20$% on investment

$=\frac{I}{5}$

$\therefore$ Total income in year $2000=I+\frac{I}{5}$

$=\frac{6I}{5}$

Investment of Mr. X in $2001=(I-5000)$

Income is same in both $2000$ and $2001$

$\therefore (I--5000)+P=\frac{6I}{5}$, P is iprofit in year $2001$

$P=\frac{I}{5}+5000$

Profit percent increased by $6$%, $\therefore$ New profit percent $20+6=26$%

$\frac{\frac{I}{5}+5000}{I-500}=\frac{26}{100}\Rightarrow 20I+5000\left(100\right)=26I-26\left(5000\right)$

$\Rightarrow 6I=\left(126\right)5000$

$\therefore I=$Rs. $1,05,000$