Question
M and N started a business by investing Rs.5000 and
Rs.6000 respectively. After 6 months, M and N increased their investments by 40% and Rs.2000 respectively. The annual profit share of N was Rs.2800. Find the total annual profit received by them together.Solution
Increased investment of M = 5000 x 1.4 = Rs.7000 Increased investment of N = 6000 + 2000 = Rs.8000 Ratio of profit share of M and N = (5000 x 6 + 7000 x 6) : (6000 x 6 + 8000 x 6) = 6:7 So, total annual profit received by them together = 2800 x (13/7) = Rs.5200
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