Question
M and N started a business by investing Rs.4000 and
Rs.5000 respectively. After 7 months, M and N increased their investments by 30% and Rs.2400 respectively. The annual profit share of N was Rs.2000. Find the total annual profit received by them together.Solution
Increased investment of M = 4000 x 1.3 = Rs.5200 Increased investment of N = 5000 + 2400 = Rs.7400 Ratio of profit share of M and N = (4000 x 7 + 5200 x 5) : (5000 x 7 + 7400 x 5) = 3:4 So, total annual profit received by them together = 2000 x (7/4) = Rs.3500
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