‘A’ and ‘B’ started a business by investing certain sum in the ratio 7:5, respectively for 8 years. If 25% of the total profit is donated in an orphanage and A’s share is Rs. 1764, then find the total profit generated from the business.

Solution

Since, ‘A’ and ‘B’ invested their sums for equal period, therefore, ratio of the profit received by ‘A’ and ‘B’ will be equal to the ratio of sum invested by them i.e. 7:5, respectively Let the total profit received by them be Rs. 100x Therefore, profit distributed between ‘A’ and ‘B’ = 0.75 × 100x = Rs. 75x Profit received by ‘A’ = 75x × (7/12) = Rs. 43.75x According to the question, 43.75x = 1764 => x = 40.32 Therefore, total profit received by ‘A’ and ‘B’ = 100x = Rs. 4032