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    Question

    Determine the initial investment made by 'Adam' if both

    'Adam' and 'Zampa' jointly invested Rs. 7000 in a startup business. After 7 months, 'Adam' added 20% more to his initial investment, and 'Zampa' withdrew 40% of his initial investment. At the end of one year, 'Zampa's profit share out of the total profit of Rs. 4712 is Rs. 3100.
    A 2000 Correct Answer Incorrect Answer
    B 2500 Correct Answer Incorrect Answer
    C 3000 Correct Answer Incorrect Answer
    D 3200 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    We can say that initial investment made by Adam is Rs.'a' Initial investment made by Zampa is Rs. (7000 тАУ a) Ratio of profit share of Adam to Zampa = (a ├Ч 7 + 1.2a ├Ч 5):[(7000 тАУ a) ├Ч 7 + 0.6 ├Ч (7000 тАУ a) ├Ч 5]┬а = 13a:(70000 тАУ 10a) According to question; [13a/(70000 тАУ 10a)] = (1612/3100) = 13/25 325a = 910000 тАУ 130a 455a = 910000 a = 2000 Initial investment made by Adam = Rs.2000

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