A company's profit increased by 20% in the first year, decreased by 10% in the second year, and increased by 15% in the third year. If the initial profit was $100,000, what is the final profit after three years?*1 pointa) $118,800b) $120,000c) $123,750d) $126,000
Question
A company's profit increased by 20% in the first year, decreased by 10% in the second year, and increased by 15% in the third year. If the initial profit was 118,800b) 123,750d) $126,000
Solution
To solve this problem, we need to apply the percentage changes year by year to the initial profit.
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In the first year, the profit increased by 20%. So, we calculate 20% of 20,000. Adding this to the initial profit gives us $120,000.
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In the second year, the profit decreased by 10%. So, we calculate 10% of 12,000. Subtracting this from the profit at the end of the first year gives us $108,000.
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In the third year, the profit increased by 15%. So, we calculate 15% of 16,200. Adding this to the profit at the end of the second year gives us $124,200.
So, the final profit after three years is $124,200. However, this option is not available in the choices given. It seems there might be a mistake in the question or the options provided.
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