New 55% Off on All Courses - Enroll Now! Click Here

    Question

    A and B started a business with initial investments of

    Rs. 30000 and Rs. 40000 respectively. After one year, a profit of Rs. 8000 is earned. A being a working partner gets 23% of the profit for managing the business and rest of the profit is shared between them in the ratio of their investments. A invested his whole profit in a scheme offering 10% compound interest compounded annually. Find the interest earned by A after 2 years.
    A Rs. 940.8 Correct Answer Incorrect Answer
    B Rs. 900.8 Correct Answer Incorrect Answer
    C Rs. 840.8 Correct Answer Incorrect Answer
    D Rs. 950.8 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The ratio of their investments = 30000:40000 = 3:4 Profit share of A for being a working partner = 0.23 times; 8000= Rs. 1840 Profit share of A for his investment = 3/7 times; 0.77 times; 8000 = Rs. 2640 Total profit of A = Rs. 2640 Compound interest earned by A = 4480{(1 + 0.10)2ndash; 1} = Rs. 940.8

    Practice Next

    Relevant for Exams: