Question
A man invests ₹15,000 in a business. In the second
year, he increases his investment by 20%, and in the third year, he reduces it by 25% of the second year’s investment. Calculate the total investment made by the man over three years.Solution
Investment in the first year = ₹15,000. Investment in the second year = ₹15,000 + 20% of ₹15,000 = ₹15,000 + ₹3,000 = ₹18,000. Investment in the third year = ₹18,000 - 25% of ₹18,000 = ₹18,000 - ₹4,500 = ₹13,500. Total investment over three years = ₹15,000 + ₹18,000 + ₹13,500 = ₹46,500.
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