Question

Amit started a shop by investing ₹5,00,000. In the first year he incurred a loss of 5%. However, during the second year he earned a profit of 10% which in the third year rose to 12%. Calculate his % Profit.

• A. 12%
• B. 17%
• C. 19%
• D. 15%

Answer 1

The Correct Option is B

Let's calculate Amit's total profit percentage over the three years.

Initial Investment: ₹5,00,000

1. First Year: A loss of 5% implies that the remaining balance is 95% of the initial amount.
   Calculation:
   A1=(1-0.05)×₹5,00,000=₹4,75,000
2. Second Year: A profit of 10% on ₹4,75,000.
   Calculation:
   A2=(1+0.10)×₹4,75,000=₹5,22,500
3. Third Year: A profit of 12% on ₹5,22,500.
   Calculation:
   A3=(1+0.12)×₹5,22,500=₹5,85,200

Overall Profit Calculation:

Ptotal=A3-InitialInitial×100=₹5,85,200-₹5,00,000₹5,00,000×100=17%

The overall percentage profit is 17%.