Mr. X, a businessman had income in the year 1995 such that he earned a profit of 20% on his investment in the business. In the year 1996 his investment mass less by Rs. 5000 but still had the same income(investment + profit) as that in 1995. Thus the percent profit earned in 1996 increased by 6%. What was his investment in 1995?

• Rs. 105000/-
  If investment in year 1995 was Rs x, then income was 1.2 x.
  then investment in year 1996 was Rs (x-5000), then income was 1.2 x.
  As per given condition
  ( 0.2x+5000)/(x-5000)= 26
  x= Rs. 105000/-
• 10 years agoHelpfull: Yes(5) No(1)
• investment in 1995 is x.
  profit is o.2x
  income=1.2x
  investment in 1996 ix x-5000
  profit=0.26x
  income=0.26x+x-5000
  but according to condition income in 1995 is equal to income in 1996
  therefore,1.2x=0.26x+x-5000
  x=83333.333
• 10 years agoHelpfull: Yes(1) No(4)
• Let the investment in 1995 be Rs. x
  
  Income in 1995 with 20% profit = 1.20x
  
  Also the income in 1996 = 1.20x Investment in 1996
  
  = Rs.(x – 5000)
  
  Profit in 1996 = (20 + 6)% = 26%
  
  Income in 1996 with 26% profit
  
  = 1.26 (x – 5000)
  
  1.26 (x – 5000) = 1.20x
  
  0.06 x = 1.26 x 5000
  
  x = 105000
• 8 years agoHelpfull: Yes(1) No(0)