Ashish started a business with an initial investment of ₹ 500000. In the first year, he incurred a loss of 4\%. However, during the second year, he earned a profit of 5\% which in the third year rose to 10\%. Calculate his net profit for the entire period of three years.
(a)₹ 48800
(b)₹ 54400
(c)₹ 55000
(d)None of these
Answer
Answer (as printed): B
Explanation
Final value $=₹\left[500000\left(1-\frac{4}{100}\right)\left(1+\frac{5}{100}\right)\left(1+\frac{10}{100}\right)\right]$ $$=₹\left[500000 \times \frac{24}{25} \times \frac{21}{20} \times \frac{11}{10}\right]=₹ 554400 .$$
Explanation as extracted from the printed page; notation may be imperfect.