Sumit borrowed capital 50000 to start business he suffered a loss of 20 % . He invested remaining capital in other business and ma

Sumit borrowed capital 50000 to start business he suffered a loss of 20 % . He invested remaining capital in other business and made profit of 5 % . How much was his profit or loss on original capital ?…pls give explanation ​

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2 thoughts on “Sumit borrowed capital 50000 to start business he suffered a loss of 20 % . He invested remaining capital in other business and ma”

  1. Given,

    Money spent by sumit to borrow capital =50,000 Rs.

    Loss suffered by sumit in first year=20%

    =

    100

    20

    ×50,000

    The loss suffered by sumit=10,000 Rs.

    Remaining capital=50,000−10,000=40,000 Rs.

    He uses this capital in sweet business & earns a profit of 5%

    Profit=

    100

    5

    ×40,000

    Profit=2,000 Rs.

    Total amount now sumit have=40,000+2000

    =42000 Rs.

    Net loss of sumit=50,000−42,000

    =8000 Rs.

    Loss %=

    50,000

    8000

    ×100=16%

    Hence, sumit has a total loss of 16%

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