Practicing Success
A businessman's earnings increase by 25% in one year but decrease by 4% in the next year. Going by this pattern, after 5 years, his total earnings would be 72000. What is his present earning? |
10000 80000 40000 54000 |
40000 |
25% = \(\frac{1}{4}\) let original value = 4 , increased value = 5 4% = \(\frac{1}{25}\) let original value = 25, decreased value = 24 after 5 years amount is = 72000 initial sum is 72000 × \(\frac{4}{5}\) × \(\frac{25}{24}\)×\(\frac{4}{5}\)×\(\frac{25}{24}\)× \(\frac{4}{5}\) = 40000 |