Question

Sumit, Ravi, and Puneet invest Rs. 45000, Rs. 81000, and Rs. 90000 respectively to start a business. At the end of the year, the total profit earned is Rs. 4800. 30% of the total profit earned is given to charity and the rest is divided among them in the ratio of their profit. What will be the share of Sumit?

• A. Rs. 700
• B. Rs. 1260
• C. Rs. 131
• D. Rs. 1400

Answer 1

Answer:

A. Rs. 700

Solution: Given: Sumit investment = Rs. 45000 Ravi investment = Rs. 81000 Puneet investment = Rs. 90000 Total profit = Rs. 4800 Profit given in charity = 30% of 4800 = 1440 Formula used: Profit ratio = Investment ratio × Time (in months) Calculation: Person Sumit Ravi Puneet Investment (in Rs.) 45000 : 81000 : 90000 Investment Ratio 5 : 9 : 10 Time (in months) 12 : 12 : 12 Profit ratio 5 : 9 : 10 Profit share distributed in Sumit, Ravi, and Puneet = 4800 – 1440 = 3360 ∴ Share of Sumit = 5 × (3360/24) = Rs. 700