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