Question
A man invests ₹40,000 in a business. After 3 years, he
sells 40% of his stake for a 30% profit and reinvests the amount. After another 2 years, he sells 20% of his remaining stake at a 45% profit and reinvests half of the profit. At the end of 5 years, he sells the rest of his stake, which has appreciated by 25%. What is the total value of his investment at the end of 5 years?Solution
Initial investment = ₹40,000. First sale after 3 years: 40% of ₹40,000 = ₹16,000. Profit = ₹16,000 × 30% = ₹4,800. Reinvested amount = ₹16,000 + ₹4,800 = ₹20,800. Remaining stake after 1st sale = ₹40,000 - ₹16,000 = ₹24,000. Second sale after 5 years: 20% of ₹24,000 = ₹4,800. Profit = ₹4,800 × 45% = ₹2,160. Reinvested amount = ₹4,800 + ₹1,080 (half the profit) = ₹5,880. Remaining stake after 2nd sale = ₹24,000 - ₹4,800 = ₹19,200. Appreciation after 5 years = ₹19,200 × 25% = ₹4,800. Final value of remaining stake = ₹19,200 + ₹4,800 = ₹24,000. Total value = ₹20,800 + ₹5,880 + ₹24,000 = ₹50,680. Plus profit reinvested earlier = ₹4,800 + ₹2,160 = ₹6,960. Final value = ₹50,680 + ₹6,960 = ₹57,640. Closest option: a) ₹57,640.
A shopkeeper sold a jacket for Rs. 2600 at a loss of 20%. At what price should he have sold the jacket, to earn a profit of 20%?
An item is marked at 25% above its cost price. A discount is given on the marked price, and the profit earned from selling the item is three-fifths of t...
Determine the original cost of a laptop if it was sold at a 20% profit for Rs. 24,000.
A started a retail business by investing Rs.50,000. After five months B joined him with a capital of Rs.60,000. After 2 years, they earned a profit of�...
A shopkeeper sells an article for Rs 78 and earns twice the profit that he would have earned on selling this article for Rs 50. Find the C.P of t...
- A wristwatch was sold for Rs. 720.80, making a gain of 20%. If the selling price had been Rs. 690 instead, what would have been the profit or loss percenta...
A man bought 5 articles K, L, M, N, O at Rs. 620 each. Selling prices of K,L, M,N and O were x, x+ 20, x +25, x +75, x +80 respectively. Overall profit ...
Find the cost of manufacturing each article if a manufacturer estimates that on inspection 14% of the articles he produces will be rejected. He a...
- If the total cost of 8 cups and 5 plates is Rs. 260 and the total cost of 6 cups and 4 plates is Rs. 200, then find the cost of 9 cups.
'G' labeled an item with a price tag that is 400% higher than its cost price and later sold it to 'A' at a discounted rate of 25%. This transaction resu...
Relevant for Exams:
