Mr X, a businessman, had income in the year 1995 such that he earned a profit of 20% on his investment in the business. In the year 1996 his investment was less by 7000 but still had the same income (Income = Investment + Profit) as that in 1995. Thus the per cent profit earned in 1996 increased by 6%. What was his investment in 1995? Pick one
A) 100000  B) 100500  C) 147000  D) Data inadequate  E) None of these
Let the investment of X in 1995 be x.   ∴ Profit = x⁄5   ∴ Income = (x + x⁄5) = 6⁄5x   Investment of company X in 1996 would be (x – 7000) From the question,   (x - 7000) × 126⁄100 = 6⁄5x ⇒ x = 147000   Answer 147000
<result>C</result>
Mr X, a businessman, had income in the year 1995 such that he earned a profit of 20% on his investment in the business. In the year 1996 his investment was less by 7000 but still had the same income (Income = Investment + Profit) as that in 1995. Thus the per cent profit earned in 1996 increased by 6%. What was his investment in 1995?