Solution: | 1st year | 2nd year |
| A | 10% profit | 20% loss |
| B | 10% loss | 20% profit |
| C | 5% profit | 5% profit |
Let A, B and C started their business with equal amount of 100.
Then, at the end of 2nd year :
A → 100 × 110/100 × 80/100 = 88
B → 100 × 90/100 × 120/100 = 108
C → 100 × 105/100 × 105/100 = 110.05
Clearly, we can see that option (c) is false.