Question

Aman started a factory with an initial investment of Rs. 100000. In the first year, he incurred a loss of 5%. However, during the second year, he earned a profit of 10% which in the third year rose to 12%. Calculate his net profit for the entire period of three years.

Answer 1

Given, 

Initial investment by Aman = Rs.100000 

In first year = loss of 5% 

In second year = profit of 10% 

In third year = profit of 12 % 

So, 

His net profit for entire period of three years \(= 100000({1}-\frac{5}{100})({1}+\frac{10}{100})({1}+\frac{12}{100})\)

\(= 100000\times\frac{19}{20}\times\frac{11}{10}\times\frac{28}{25}\) = 117040

Profit = 117040 – 100000= Rs.17040