A businessman's earning increase by 25%in one year but decreases by 4% in the next. Going by this pattern, after 5 years, his total earnings would be Rs.72000. Whatis his present earning?
Show answer & explanation
Correct answer: C
Explanation
The correct option is 3.
using the chaining method
we can write 25% = 
, 4% = 
1st years increase 4-----> 5
2nd year decrease 25 ----> 24
3rd year increase 4--------> 5
4th year decrease 25 ----> 24
5th years increase 4-----> 5
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initial ---> final ratio is 5 --------> 9
after 5 years earning is 9 --->72000
present earning = 5 × 8000 = rs 40000