Jack set up a factory by investing ₹40,000. During the first three successive years, his profits were 5%, 10% and 15 % respectively. If each year the profit was on previous years’s capital, find his total profit.
Since, each year the profit is on the previous year’s capital,
∴ it is similar to Compound profit.
∴ compound profit
= 40,000 [1.328 –1]= ₹13, 130