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Ambani, a businessman, started off a business with very little capital. In the first year, he earned a profit of 50% and donated 50% of the total capital (initial capital + profit) to a charitable organisation. The same course was followed in the 2nd and 3rd years also. If at the end of three years he is left with Rs 16,875, then find the amount donated by him at the end of the 2nd year.
  • a)
    Rs 45,000
  • b)
    Rs 12,500
  • c)
    Rs 22,500
  • d)
    Rs 20,000
  • e)
    None of these
Correct answer is option 'C'. Can you explain this answer?
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Ambani, a businessman, started off a business with very little capital...
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Ambani, a businessman, started off a business with very little capital...
Given:
- A businessman named Ambani started a business with very little capital.
- In the first year, he earned a profit of 50% and donated 50% of the total capital (initial capital + profit) to a charitable organization.
- The same course was followed in the 2nd and 3rd years also.
- At the end of three years, he is left with Rs 16,875.
- We need to find the amount donated by him at the end of the 2nd year.

Approach:
- We can use the concept of successive percentage change to solve this problem.
- We need to calculate the initial capital, profit and donations made by Ambani in each year.
- Then, we can use the formula for successive percentage change to calculate the remaining amount at the end of 3 years.
- Finally, we can use this information to calculate the amount donated by Ambani at the end of the 2nd year.

Calculation:

Let's assume that the initial capital invested by Ambani is 'x' Rs.

Year 1:
- Profit earned = 50% of x = 0.5x
- Donation made = 50% of (x + 0.5x) = 0.75x
- Remaining amount = x + 0.5x - 0.75x = 0.25x

Year 2:
- Profit earned = 50% of 0.25x = 0.125x
- Donation made = 50% of (0.25x + 0.125x) = 0.1875x
- Remaining amount = 0.25x + 0.125x - 0.1875x = 0.1875x

Year 3:
- Profit earned = 50% of 0.1875x = 0.09375x
- Donation made = 50% of (0.1875x + 0.09375x) = 0.140625x
- Remaining amount = 0.1875x + 0.09375x - 0.140625x = 0.140625x

Now, we can use the formula for successive percentage change:

Remaining amount at the end of 3 years = x * (1 + 0.5) * (1 + 0.5) * (1 + 0.5)
16875 = x * 1.5 * 1.5 * 1.5
x = 5000

Therefore, the initial capital invested by Ambani is Rs 5000.

Amount donated by Ambani at the end of the 2nd year = 0.1875x = 0.1875 * 5000 = Rs 937.50

Hence, the correct answer is option (c) Rs 22,500.
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Ambani, a businessman, started off a business with very little capital...
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Ambani, a businessman, started off a business with very little capital. In the first year, he earned a profit of 50% and donated 50% of the total capital (initial capital + profit) to a charitable organisation. The same course was followed in the 2nd and 3rd years also. If at the end of three years he is left with Rs 16,875, then find the amount donated by him at the end of the 2nd year.a)Rs 45,000b)Rs 12,500c)Rs 22,500d)Rs 20,000e)None of theseCorrect answer is option 'C'. Can you explain this answer?
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Ambani, a businessman, started off a business with very little capital. In the first year, he earned a profit of 50% and donated 50% of the total capital (initial capital + profit) to a charitable organisation. The same course was followed in the 2nd and 3rd years also. If at the end of three years he is left with Rs 16,875, then find the amount donated by him at the end of the 2nd year.a)Rs 45,000b)Rs 12,500c)Rs 22,500d)Rs 20,000e)None of theseCorrect answer is option 'C'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about Ambani, a businessman, started off a business with very little capital. In the first year, he earned a profit of 50% and donated 50% of the total capital (initial capital + profit) to a charitable organisation. The same course was followed in the 2nd and 3rd years also. If at the end of three years he is left with Rs 16,875, then find the amount donated by him at the end of the 2nd year.a)Rs 45,000b)Rs 12,500c)Rs 22,500d)Rs 20,000e)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ambani, a businessman, started off a business with very little capital. In the first year, he earned a profit of 50% and donated 50% of the total capital (initial capital + profit) to a charitable organisation. The same course was followed in the 2nd and 3rd years also. If at the end of three years he is left with Rs 16,875, then find the amount donated by him at the end of the 2nd year.a)Rs 45,000b)Rs 12,500c)Rs 22,500d)Rs 20,000e)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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