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# Jitendra Set up a Factory by Investing Rs 2500000. During the First Two Successive Years His Profits Were 5% and 10% Respectively. If Each Year the Profit Was on Previous Year'S - Mathematics

Sum

Jitendra set up a factory by investing Rs 2500000. During the first two successive years his profits were 5% and 10% respectively. If each year the profit was on previous year's capital, compute his total profit.

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#### Solution

Profit at the end of the first year = P $\left( 1 + \frac{R}{100} \right)$
$= 2, 500, 000\left( 1 + \frac{5}{100} \right)$
$= 2, 500, 000\left( 1 . 05 \right)$
$= 2, 625, 000$
Profit at the end of the second year = P $\left( 1 + \frac{R}{100} \right)$
$= 2, 625, 000\left( 1 + \frac{10}{100} \right)$
$= 2, 625, 000\left( 1 . 10 \right)$
$= 2, 887, 500$
Total profit = Rs 2, 887, 500 - Rs 2, 500, 000
= Rs 387, 500

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#### APPEARS IN

RD Sharma Class 8 Maths
Chapter 14 Compound Interest
Exercise 14.4 | Q 16 | Page 28
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