Question

A and B starts a business with investment of Rs. 28000 and Rs. 42000 respectively. A invests for 8 months and B invests for one year. If the total profit at the end of year is Rs. 21125, then what is the share of B?

• A. Rs. 14625
• B. Rs. 12625
• C. Rs. 13575
• D. Rs. 14285

Answer 1

Answer:

A. Rs. 14625

Solution: Given: A’s investment = Rs. 28000 for 8 months B’s investment = Rs. 42000 for 12 months Total profit = Rs. 21125 Formula used: Profit ratio = Investment ratio × Time (in months) Calculation: Profit of A/Profit of B = 28000 × 8/(42000 × 12) ⇒ Profit of A/Profit of B = 4/9 Let the profit of A be 4x and profit of B be 9x So 13x = 21125 ⇒ x = 1625 ∴ Profit share of B = 9x = 9 × 1625 = Rs. 14625