Ashish started a business with an initial investment of Rs. 500000. In the first year, he incurred a loss of 4%. However, during the second year, he earned a profit of 5% which in the third year rose to 10%. Calculate his net profit for the entire period of three years.
a. `R s .48800`
b. `R s .54400`
c. `R s .55000`
d. none of these

Explanation

" Initial investment in business(P)`= Rs. 500000`
In the first year, he
incurred a loss (r)`=4%`
during the second year, he earned a profit (R)`=
5%`
In the third year rose to 10%i.e.profit(R)`=10%`
Then net profit for entire three year`=P(1-r/100)(1+R/100)(1-R/100)`
`=500000(1-4/100)(1+5/100)(1+10/100)`
`=500000(1-0.04)(1+0.05)(1+0.1)`
`=500000(0.96)(1.05)(1.1)`
`=(500000xx96xx105xx11)/(100xx100xx10)`
`=5xx96xx105xx11`
`=554400`
Thus net profit is `554400` rupees.
"