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Types of Investments and Understanding Profitability

Suman investe...

Question

Suman invested ₹50000 in her new food business. In the first year she suffered a loss of 10%. She invested the amount left with her in a metal business and made a 12% profit on it. Calculate the overall profit or loss that she incurred.

A

₹400 Loss

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B

₹400 Profit

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C

₹480 Profit

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D

₹560 Profit

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Solution

The correct option is B ₹400 Profit
Sum invested = ₹50000
Loss incurred = $\frac{10}{100} \times 50000 =$ ₹5000
Sum left at the end of 1 year = ₹50000 - ₹5000 = ₹45000
Profit made on ₹45000 = $\frac{12}{100} \times 45000 =$ ₹5400
Amount = ₹45000 + ₹5400 = ₹50400
Since 50400 > 50000
Profit = ₹50400 - 50000 = ₹400

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