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A businessman, had income in the year 19...

A businessman, had income in the year 1995 such that he earned a profit of `20% ` on his investment in the business. In the year 1996 his investment was less by Rs. 5000 but still had the same income (Income = Investment + profit) as that in 1995. Thus the percent profit earned in 1996 increased by `26%` . What was his investment in 1995?

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The correct Answer is:
Rs. 105000
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