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 2000 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?	Choose the correct choice from the following answers:
A) 100000  B) 12500  C) 42000  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 – 2000) From the question,   (x - 2000) × 126⁄100 = 6⁄5x ⇒ x = 42000   Answer 42000
<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 2000 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?