Question
Charu and Chetan started a business by investing Rs.
15,000 and Rs. 20,000 respectively. Charu also worked as the active manager and for that, she is entitled to receive a commission which is equal to 16% of the profit. If the difference between the amount received by Charu and Chetan at the end of the year is Rs. 3000, then find the profit (before commission was given to Charu) earned by them.Solution
Let the profit earned before commission was given to Charu be Rs. ‘100x’.  Commission of Charu = 100x × 0.16 = Rs. 16x.  Ratio of profit shares of Charu to Chetan = 15000:20000 = 3:4.  Profit earned by Charu = (100x – 16x) × (3/7) = Rs. 36x.  Profit earned by Chetan = (100x – 16x) × (4/7) = Rs. 48x.  According to the question,  36x + 16x – 48x = 3000,  Or, 2x = 3000,  So, x = 1500.  So, required profit = 1500 × 100 = Rs. 1,50,000
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