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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.

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Given details are,

Initial investment by Aman = Rs.100000

In first year = incurred a loss of 5%

In second year = earned a profit of 10%

In third year = earned a profit of 12 %

By using the formula,

A = P (1 + R/100)

x = 100000 (1 – 5/100) (1 + 10/100) (1 + 12/100)

= 100000 (95/100) (110/100) (112/100)

= 100000 (0.95) (1.1) (1.12)

= 117040

∴ Aman’s net profit for entire three years is 117040 – 100000 = Rs 17040

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