Question

Ramesh started a business investing a sum of Rs. 40,000. Six months later, Kevin joined by investing Rs. 20,000. If they make a profit of Rs. 10,000 at the end of the year, how much is the share of Kevin?

• A. Rs. 2,000
• B. Rs. 2,500
• C. Rs. 4,000
• D. Rs. 3,000

Answer 1

Answer:

A. Rs. 2,000

Solution: Given: Ramesh's investment = Rs. 40000 Kevin's investment = Rs. 20000 Total profit at the end of the year = Rs. 10000 Ramesh's time period of investment = 12 months Kevin's time period of investment = 6 months Formula used: (Ramesh's profit) ∶ (Kevin's profit) = (Ramesh's capital × Time period of investment) ∶ (Kevin's capital × Time period of investment) Calculations: Ratio of their profit = (40000 × 12) ∶ (20000 × 6) ⇒ 480000 ∶ 120000 ⇒ 4 ∶ 1 Ramesh's profit = 4x Kevin's profit = x Total profit = 4x + x ⇒ 5x = 10000 ⇒ x = Rs. 2000 ∴ The share of Kevin in the total profit is Rs. 2000