Question
'A' and 'B' started a business with a combined capital
of Rs. 3600. 'A' invested Rs. 400 more than 'B'. At the end of the first year, 'A' raised his investment by 20%, while 'B' reduced his by 20%. If the total profit at the end of three years was Rs. 13,700, how much of this profit does 'A' receive?Solution
Initial investment made by ‘A’ = (3600 + 400)/2 = Rs. 2000 Initial investment made by ‘B’ = 3600 – 2000 = Rs. 1600 Ratio of profit share of ‘A’ to ‘B’ = [2000 + 1.20 × 2000 × 2]:[1600 + 0.80 × 1600 × 2] = 6800:4160 = 85:52 Profit share of ‘A’ = 85/137 × 13700 = Rs. 8500 Hence, option a.
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