Question

Jitendra set up a factory by investing Rs. 2500000. During the first two successive years his profits were 5% and 10% respectively. If each year the profit was on previous year’s capital, compute his total profit.

Answer 1

Given, 

Initial investment by Jitendra = Rs.2500000 

Profit in first 2 successive years = 5% & 10% 

Final investment after two successive profits 

\(= 2500000\times\frac{105}{100}\times\frac{110}{10}\) = Rs. 2805000

Hence, 

His total profit = 2805000 – 2500000 = Rs.387500