Sumit borrowed capital of Rs. $50, 000$ to start his food products business. In the first year, he suffered a loss of $20 %$ . He invested the remaining capital in a new sweets business and made a profit of $5 %$ . How much was his profit or loss computed on his original capital?

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Solution

Given,
Money spent by sumit to borrow capital $= 50, 000$ Rs.

Loss suffered by sumit in first year $= 20 %$
$= \frac{20}{100} \times 50, 000$

The loss suffered by sumit $= 10, 000$ Rs.

Remaining capital $= 50, 000 - 10, 000 = 40, 000$ Rs.

He uses this capital in sweet business & earns a profit of $5 %$

Profit $= \frac{5}{100} \times 40, 000$

Profit $= 2, 000$ Rs.

Total amount now sumit have $= 40, 000 + 2000$
$= 42000$ Rs.

Net loss of sumit $= 50, 000 - 42, 000$
$= 8000$ Rs.

Loss $% = \frac{8000}{50, 000} \times 100 = 16 %$

Hence, sumit has a total loss of $16 %$ .

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Sumit borrowed capital of Rs. 50,000 to start his food products business. In the first year, he suffered a loss of 20%. He invested the remaining capital in a new sweets business and made a profit of 5%. How much was his profit or loss computed on his original capital?

Sumit borrowed capital of Rs. $50, 000$ to start his food products business. In the first year, he suffered a loss of $20 %$ . He invested the remaining capital in a new sweets business and made a profit of $5 %$ . How much was his profit or loss computed on his original capital?