Ashish started the business with an initial investment of Rs. 500000. In the first year he incurred a loss of 4%. However during the second year he earned a profit of 5% which in third year rose to 10%. Calculate the net profit for the entire period of 3 years.

Question

Philoid · Accepted Answer

Given,

Initial investment by Ashish = Rs.500000

Loss in first year = 4%

Profit in 2^nd year = 5 %

Profit in 3^rd year = 10%

Hence,

Finally investment becomes =

= Rs.5090400

Net profit = Rs.(5090400 – 500000) = Rs.554400