Sharad started a business with an initial investment of 400000 rupees. 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 his net profit for the entire period of 3years.

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Solution

Answer :

Initial investment = 4,00, 000

So, Loss or profit is based on this initial amount .

So, Loss of 4% , so loss of money = 4 × 400000/100= Rs. 16,000

Now remaining amount at starting of second year = 4,00,000 - 16,000 = 3,84,000

So,
After second year he earned 5% , So now he have total amount = 3,84000 +
5 × 384000/100 = 3,84,000 + 19,200 = Rs 4,03,200

And
After third year he earned 10% , So now he have total amount =4,03,200 +
10 × 403200/100 = 4,03,200 + 40,320= Rs 4,43,520

So,

Total profit in entire period of 3 years = 4,43,520 - 4,00,000 = Rs. 43,520 ( Ans )

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