New Click here to enroll in UIICL SO Finance and Investment Course

    Register

    Question

    Aryan, Bhavya, and Chetan initiated a venture with initial investments of Rs. 50,000, Rs. 60,000, and Rs. 72,000 respectively. After six months, Aryan, Bhavya, and Chetan withdrew 80%, 50%, and 75% of their initial investments respectively. After one year, 'r'% of the profit of Rs. 60,000 was given to Aryan for being a working partner, and the rest of the amount was distributed among Aryan, Bhavya, and Chetan in the ratio of their investments. Bhavya invested his profit in an SIP offering 10% p.a. compound interest for 2 years and earned an interest of Rs. 4,158. Determine the value of 'r'.

    A 12% Correct Answer Incorrect Answer
    B 15% Correct Answer Incorrect Answer
    C 20% Correct Answer Incorrect Answer
    D 25% Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Ratio of their investments = 50000 × 6 + 10000×6 : 60000 × 6 + 30000 × 6 : 72000 × 6 + 18000 × 6 = 2:3:3 Let the profit share of Chetan = Rs. y So according to question: y × {(1 + 0.10)2 – 1} = 4158 y × {1.21 – 1} = 4158 y = 4158/0.21 y = 19800 So profit share of C = Rs. 19,800 Amount which was distributed in the ratio of their investments = (19800/3) × 8 = Rs. 52,800 So according to question: r% of 60000 = 60000 – 52800 600 r = 7200 r = 12 So the value of r = 12%

    Practice Next

    Relevant for Exams: