A man's earnings increase by 25% in one year and increase by 60% in the next year. Going by this pattern, after 3 years, his total earnings would be 40000. What is his present earning?
Answer & explanation
Correct answer: option 1
25% = \(\frac{1}{4}\) let original value = 4 , increased value = 5
60% = \(\frac{8}{5}\) let original value = 5 , increased value = 8
after 3 years amount is = 40000
initial sum is
40000 × \(\frac{4}{5}\) × \(\frac{5}{8}\)×\(\frac{4}{5}\) = 16000