Given,
Initial investment by Ashish is = Rs 500000
Incurred loss in the first year is = 4%
Profit in 2nd year is = 5 %
Profit in 3rd year is = 10%
By using the formula,
A = P (1 + R/100)n
= 500000 (1 – 4/100) (1 + 5/100) (1 + 10/100)
= 500000 (96/100) (105/100) (110/100)
= 500000 (0.96) (1.05) (1.1)
= 554400
∴ The net profit for the entire period of 3 years is Rs 554400.