Anupam started a business with an initial investment of ₹2,00,000. In the first year, he incurred a loss of 4%. However, during the second year, he earned a profit of 10%, and in the third year he earned a profit of 15%. Calculate his net profit for the entire period of three years.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹42,880
Calculations:
Change in anupam investment during the 3 years = 200000 × (96/100) × (110/100) × (115/100)
⇒ ₹ 242880
Net profit for the entire period of three years = 242880 - 200000 = ₹ 42,880