Question : A businessman's earnings increased by 25% in one year but decreased by 4% in the next. Going by this pattern, after 5 years, his total earnings would be Rs. 72,000. What is his present income?
Option 1: Rs. 10,000
Option 2: Rs. 80,000
Option 3: Rs. 40,000
Option 4: Rs. 54,000
Correct Answer: Rs. 40,000
 
  Solution :
 
 Let the present income be Rs. $x$
 
  According to the question,
  
  $x × 1.25 × 0.96 × 1.25 × 0.96 × 1.25 = 72000$
  
  ⇒ $x = \frac{72000}{1.25 × 0.96 × 1.25 × 0.96 × 1.25}$
  
  ⇒ $x = \frac{72000}{1.2 × 1.2 × 1.25}$
  
  ⇒ $x = \frac{72000}{1.8}$
  
  ⇒ $x= 40,000$
  
  Hence, the correct answer is Rs. 40,000.
 
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