'A', 'B' and 'C' started their independent businesses with equal amounts of capital. During the first year 'A' made 10% profit, 'B' incurred 10% loss and 'C' made a profit of 5%. In the second year 'A' incurred 20% loss, 'B' made profit of 20% and 'C' made profit of 5%. Which of the following is FALSE at the end of second year ?

'A', 'B' and 'C' started their independent businesses with equal amounts of capital. During the first year 'A' made 10% profit, 'B' incurred 10% loss and 'C' made a profit of 5%. In the second year 'A' incurred 20% loss, 'B' made profit of 20% and 'C' made profit of 5%. Which of the following is FALSE at the end of second year ? Correct Answer 'B' is the richest

GIVEN:

A's outcome for First year = 10% profit

B's outcome for First year = 10% loss

C's outcome for First year = 5% profit

A's outcome for Second year = 20% loss

B's outcome for Second year = 20% profit

C's outcome for Second year = 5% profit

CALCULATION:

Let the initial investment of A, B and C is Rs.100

A's first year outcome = 100 × 110/100 = 110

B's first year outcome = 100 × 90/100 = 90

C's first year outcome = 100 × 105/100 = 105

A's second year outcome = 110 × 80/100 = 88

B's second year outcome = 90 × 120/100 = 108

C's second year outcome = 105 × 105/100 = 110.25

Thus, B is NOT the richest.