MR durrani bought a plot of land bought a plot of land for 180000 and a car rupees for 3320000 at the same time.

MR durrani bought a plot of land bought a plot of land for 180000 and a car rupees for 3320000 at the same time. The value of the plot of land grows uniformly at the rate of 30% p.a. while the value of the car depreciates by 20% in the first year and by 15% p.a. thereafter. If he seils the plot of land as well as the car after 3 years, what will be his profit or loss?

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    Solution:

    Solutions: Total buying cost of land and car = 320000 + 180000 = 500000 cost of plot after 3 years = 180000 x 1.3 x 1.3 x 1.3 = 395460 cost of car after 3 years = 320000 x 0.80 x 0.85 x 0.85 = 184960 Total cost of plot and car after 3 years = 395460 + 184960 = 580420 Profit = 580420 - 500000 = 80420
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