Question

Mr X, a businessman had the income in the year 2000, such that he earned a profit of 20% on 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 26%. What was his investment in 2000 ?

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

Answer 1

The correct option is B Rs 1,05,000

Let investment of X in year 2000=x Rs.
$\therefore profit=\frac{x}{5}$
$\therefore income=(x+\frac{x}{5})=\frac{6x}{5}$
Investment of X in year 2001 is $(x-5000)$
According to the question
$\Rightarrow (x-5000)\times \frac{126}{100}=\frac{6}{5}x$
$\Rightarrow \frac{126x}{100}-6300=\frac{6}{5}x$
$\Rightarrow \frac{126x}{100}-\frac{6x}{5}=6300$
$\Rightarrow \frac{126x-120x}{100}=6300$
$\Rightarrow 6x=630000$
$\Rightarrow x=105000Rs$