I invested Rs.50000 in a business. In the first year I suffered a loss of 5%. In the second and the third years (assuming that profit was reinvested for the next year), I made profits of 10% and 15%. Instead had I invested the money at 10% p.a. compound interest for the three years, how much additional amount would I have earned? Option 1) Rs.3842.50 Option 2) Rs.6460.50Option 3) Rs.6462.50 Option 4) Rs 8842 Option 5) Rs.4242.50

Loss of 5 % $= 50000 \times \frac{5 }{100}= 2500$

Remaining amount$= 47500$

After 10 % gain $= \frac{110}{100} \times 47500$

Amount$= 52250$

After 15 5 gain amount $= \frac{115}{100} \times 52250 = 60087.50$

Amount compounded annually at 10 % p.a

For three year $= 50000 [ 1 + \frac{10}{100} ] = 66550$

Difference $= 66550 -60087. 50 = 6462.50$

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