1.

Mr. Sanjay Sharma, a businessman had some income in the year 2000, such that he earned a profit of 20% on his investment in the business. In the year 2001, his investment was less by Rs. 5 lakh but still had the same income (Income = Investment + Profit) as that in year 2000. Thus the percent Profit earned in year 2001 increased by 6% percentage point. What was his investment in year 2000?1). Rs. 102000002). Rs. 105000003). Rs. 150500004). Data inadequate

Answer»

Let the INVESTMENT be a.

Given, a businessman had some income in the year 2000, such that he earned a profit of 20% on his investment in the business. In the year 2001, his investment was less by RS. 5 lakh but STILL had the same income (Income = Investment + Profit) as that in year 2000. The profit INCREASE by 6%.

a + 20% of a = a – 500000 + 26% of (a – 500000)

1.2a = 1.26a – 1.26 × 500000

⇒ 0.06a = 1.26 × 500000

⇒ a = Rs. 10500000


Discussion

No Comment Found

Related InterviewSolutions