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?
using the chaining methodÂ
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
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intial --->final ratio is 5--------> 9
after 5 years earning is 9 --->72000
present earning = 5 $$\times 8000$$ = rs 40000
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