New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    A, B and C started a business with initial investments

    in the ratio 3:4:9, respectively. After one year A, B and C made additional investments equal to 22%, 25% and 30% of their initial investments respectively. Find the profit share of B out of the total profit of Rs. 18180 after two years.
    A Rs. 6000 Correct Answer Incorrect Answer
    B Rs. 2940 Correct Answer Incorrect Answer
    C Rs. 4900 Correct Answer Incorrect Answer
    D Rs. 4500 Correct Answer Incorrect Answer
    E Rs. 5520 Correct Answer Incorrect Answer

    Solution

    Let the initial investments of A, B and C be Rs. 3x, Rs. 4x and Rs. 9x respectively. So the additional investment of A = 0.22 × 3x = Rs. 0.66x Additional investment of B = 0.25 × 4x = Rs. x Additional investment of C = 0.30 × 9x = Rs. 2.7x Ratio of investments of A, B and C = (3x + 3x + 0.66x):(4x + 4x + x):(9x + 9x + 2.7x) = 6.66x : 9x : 20.7x = 37 : 50 : 115 So the profit share of B = 50/(37 + 50 + 115) × 18180 = Rs. 4500

    Practice Next

    Relevant for Exams: