Question
A businessman's earning increase by 25%in one year but
decreases by 4%in the next. Going by this pattern, after 5 years, his total earnings would be Rs.72000. What is his present earning?Solution
using the chaining method we can write 25% =1/4 , 4% = 1/25 1st years increase 4-----> 5 2nd year decrease 25 ----> 24 3rd year increase 4--------> 5 4th year decrease 25 ----> 24 5th years increase 4-----> 5 initial --->final ratio is 5--------> 9 after 5 years earning is 9 --->72000 present earning = 5 × 8000 = Rs 40000
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