A man started off a bussiness with a certain capital amount. In the first year, he earned 60% profit and donated 50% of the total capital (initial amount+profit). He followed the same procedure with the remaining capital after the second and the third year. If at the end of the three year, he is left with Rs 15,360, what was the initial amount (in Rs) with which the man started his business?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 30,000
Profit% = 60% on capital
Donation = 50% of total capital(initial amount + profit)
Total capital = Initial amount + profit
Let the capital at the start be 100a.
After 1st year, his capital = 100a + 100a × 60% = 160a
After donating, his capital = 160a - 160a × 50% = 80a
After 2nd year, his capital = 80a + 80a × 60% = 128a
After donating, his capital = 128a - 128a × 50% = 64a
After 3rd year, his capital = 64a + 64a × 60% = 102.4a
After donating, his capital = 102.4a - 102.4a × 50% = 51.2a
ATQ -
51.2a = Rs. 15360
a = 300
100a = 300(100) = Rs. 30000
So, his capital at the start was Rs. 30000