The following table give in the income and expenditure of a company (in? lakh) for five years. Year2007 2008 2010 2010 2011 Income2000 2050 2170 2200 225C Expenditure 1500 1500 1600 1600 1650 In which year did the company register highest percentage increase in profit over the previous year’s profit ?

The correct answer is (a).

The percentage increase in profit over the previous year’s profit is calculated as follows:

Percentage increase = (Profit this year – Profit last year) / Profit last year * 100%

In 2008, the profit was 2050 – 1500 = 550.
In 2007, the profit was 2000.
The percentage increase in profit over the previous year’s profit in 2008 is therefore 550 / 2000 * 100% = 27.5%.

In 2009, the profit was 2170 – 1600 = 570.
In 2008, the profit was 2050.
The percentage increase in profit over the previous year’s profit in 2009 is therefore 570 / 2050 * 100% = 27.8%.

In 2010, the profit was 2200 – 1600 = 600.
In 2009, the profit was 2170.
The percentage increase in profit over the previous year’s profit in 2010 is therefore 600 / 2170 * 100% = 27.8%.

In 2011, the profit was 2250 – 1650 = 600.
In 2010, the profit was 2200.
The percentage increase in profit over the previous year’s profit in 2011 is therefore 600 / 2200 * 100% = 27.27%.

Therefore, the company registered the highest percentage increase in profit over the previous year’s profit in 2008.