Question

X and Y invest ₹60,000 and ₹80,000 respectively in a business. After 1 year, the total profit is distributed including simple interest at 8% per annum on the capital of each partner. If the total profit including interest is ₹22,400, what is X's share of the profit ?

• A. ₹9600
• B. ₹8200
• C. ₹9800
• D. ₹10000

Answer 1

Answer:

A. ₹9600

Let the investments be:

• X = ₹60,000

• Y = ₹80,000

The total amount to be distributed is ₹22,400, which includes 8% simple interest on capital.

Step 1: Calculate interest on capital

• X's interest = (8%) of ₹60,000 = ₹4,800

• Y's interest = (8%) of ₹80,000 = ₹6,400

Total interest:

4800 + 6400 = ₹11,200

Step 2: Find the remaining profit

22,400 - 11,200 = ₹11,200

This remaining profit is shared in the ratio of their capitals:

60,000 : 80,000 = 3 : 4

So X's share of the remaining profit is:

$11,200 \times \frac{3}{7}$ = ₹4,800

Step 3: Total share of X

$\text{Interest} + \text{Profit share}$
= 4,800 + 4,800
= ₹9,600