A man started off a business with a certain capital amount. In the first year, he earned 60% profit and donated 50% of the total capital (initial amount + profit). He followed the same procedure with the remaining capital after the second and the third year. If at the end of the three years, he is left with ₹15,360, what was the initial amount (in ₹) with which the man started his business?
Answer & explanation
Correct answer: option 2
Let the capital initially be = x
+60% = \(\frac{8}{5}\)
-50% = \(\frac{1}{2}\)
ATQ,
In the first year, he earned 60% profit and donated 50% of the total capital (initial amount + profit) and following this same procedure for next 3 years .
x × \(\frac{8}{5}\) × \(\frac{1}{2}\) × \(\frac{8}{5}\) × \(\frac{1}{2}\) × \(\frac{8}{5}\) × \(\frac{1}{2}\) = 15,360
x × \(\frac{512}{1000}\) = 15,360
x = 30,000