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Q.

Mr. X, a business man had the income in the year 2000, such that he earned a profit of 20% n his investment in the business. In the year 2001, his investment was less by Rs. 5000 but still had the same income (Income=Investment+Profit) as that in 2000. Thus, the percent profit earned in 2001increased by 6%. What was his investment in 2000?


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a

102000

b

105000

c

150500

d

155500 

answer is B.

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Detailed Solution

It is given a profit of 20%.
Let investment of Mr. X be 'I' in 2000.
Profit in year 2000=20% on investment
 I5 Total income in year 2000=I+I5 6I5
Investment of Mr. X in 2001=(I-5000)
Income is same in both 2000and 2001,
(I-5000)+P=6I5,
P is profit in year 2001, P=I5+5000 Profit percent increased by 6%,
New profit percent 20+6=26%
 I5+5000I-500=26100
20I+5000(100)=26I-26(5000) 6I=(126)5000 I=Rs. 1,05,000 Hence, the correct option is (2) .
 
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