Question 40

A businessman's earning increase by 25%in one year but decreases by 4%in the next. Goingby this pattern, after 5 years, his total earnings would be Rs.72000. Whatis his present earning?

Solution

using the chaining method

we can write 25% = $$\frac{1}{4}$$ , 4% = $$\frac{1}{25}$$

1st years increase 4-----> 5

2nd year decrease 25 ----> 24

3rd year increase 4--------> 5

4th year decrease 25 ----> 24

5th years increase 4-----> 5

-------------------------------------

intial --->final ratio is 5--------> 9

after 5 years earning is 9 --->72000

present earning = 5 $$\times 8000$$ = rs 40000

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