Question
A person invests ₹20,000 in a scheme that offers 20%
profit in the first year and 25% profit in the second year(On total amount including interest). What is the total amount after 2 years?Solution
Amount after 1st year = ₹20,000 + 20% of ₹20,000 = ₹20,000 + ₹4,000 = ₹24,000. Amount after 2nd year = ₹24,000 + 25% of ₹24,000 = ₹24,000 + ₹6,000 = ₹30,000. The total amount after 2 years is ₹30,000.
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