Deepak starts a business with a capital of ₹1,60,000. He incurs a loss of 10% during the first year. But he makes a profit of 5% during the second year on his remaining investment. Finally, he makes a profit of 25% on his new capital during the third year. Find his total profit at the end of three years.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹29,000.
Initial capital = 160000
Capital at the end of year = 160000 × (90/100) × (105/100) × (125/100) = 189000
Total profit = 189000 - 160000 = 29000
Therefore, Deepak's total profit at the end of three years is ₹29,000.