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.

Given,


Initial investment by Jitendra = Rs.2500000


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


Final investment after two successive profits =


Hence,


His total profit = 2805000 – 2500000 = Rs.387500


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