Question

A, B, and C invested ₹40,000, ₹60,000, and ₹1,00,000 respectively in a business. If the total profit at the end of the year is ₹40,000, what is A's share of the profit?

• A. ₹12,200
• B. ₹8,000
• C. ₹12,000
• D. ₹9,000

Answer 1

Answer:

B. ₹8,000

Profit is divided in the ratio of the investments (assuming all invested for the same duration).

Investments:

• A = ₹40,000

• B = ₹60,000

• C = ₹1,00,000

Ratio = 40,000 : 60,000 : 1,00,000 = 2 : 3 : 5

Total ratio parts = 2 + 3 + 5 = 10

A's share of the profit:

$\frac{2}{10} \times 40000 = 8000$

Answer: ₹8,000