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By using cell linking and freezing functions calculate profit for the year 2026Revenue of year 2020 is Rs. 30000Cost is 70 % of revenue in 2020 and expected to remain 70% of revenue in future also.Growth rate in revenue is 11% on year on year basis.Options :13663168341693417936

Question

By using cell linking and freezing functions calculate profit for the year 2026Revenue of year 2020 is Rs. 30000Cost is 70 % of revenue in 2020 and expected to remain 70% of revenue in future also.Growth rate in revenue is 11% on year on year basis.Options :13663168341693417936

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Solution

To calculate the profit for the year 2026, we need to first calculate the revenue for each year from 2021 to 2026, taking into account the 11% growth rate. Then, we calculate the cost for each year as 70% of the revenue. The profit for each year is then the revenue minus the cost. Here are the steps:

  1. Calculate the revenue for 2021: Revenue of 2020 * (1 + growth rate) = Rs. 30000 * (1 + 0.11) = Rs. 33300
  2. Calculate the cost for 2021: Revenue of 2021 * 0.70 = Rs. 33300 * 0.70 = Rs. 23310
  3. Calculate the profit for 2021: Revenue of 2021 - Cost of 2021 = Rs. 33300 - Rs. 23310 = Rs. 9990
  4. Repeat steps 1 to 3 for each year from 2022 to 2026. Remember to use the revenue of the previous year to calculate the revenue of the current year.
  5. The profit for the year 2026 is the revenue for 2026 minus the cost for 2026.

Note: This calculation assumes that the cost and revenue growth rate remain constant throughout the years.

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