jitendra set up a factory by investing RS2500000.during the first 2 successive years his profits were 5%, 10% respectively.if each year the profit was on the previous years capital, compute his total profit.

Asked by mahimachaki chaki | 7th Jul, 2013, 07:04: PM

Expert Answer:

The question seems a bit incomplete. Is Jitendra is also investing back all of his profit into the business again or not? If yes, then we can compute his total profit like shown below. 
 
So, for the first year, P = Rs 25,00,000
profit% = 5%
Hence profit = 5% of 25,00,000 = Rs125000
 
Hence, total capital for the next year = Rs 25,00,000 + 125000 = Rs 26,25,000
Profit for second year = 10%
Hence profit = 10% of 26,25,000 = Rs 262500
 
Hence, total profit = Rs1,25,000 + Rs 2,62,500  = Rs387500

Answered by  | 8th Jul, 2013, 06:18: PM

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