A man in business loses in the first year 10% of his capital, but in the second year he gains 12% of what he had at the end of the first year and his capital is now Rs. 400 more than that at the beginning of first year. Find his original capital.
Explanation:
Let c be the initial capital.
At the end of 1st year, capital remaining = 0.9c
At the end of 2nd year, capital remaining = 1.12 × 0.9c = 1.008c
It is further given that 1.008c = c + 400.
⇒ 0.008c = 400
⇒ c = 400/0.008 = Rs. 50,000
Hence, option (a).
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