Question
M and N started a business by investing Rs.4000 and
Rs.5000 respectively. After 8 months, M and N increased their investments by 25% and Rs.2000 respectively. The annual profit share of N was Rs.3400. Find the total annual profit received by them together.Solution
Increased investment of M = 4000 x 1.25 = Rs.5000 Increased investment of N = 5000 + 2000 = Rs.7000 Ratio of profit share of M and N = (4000 x 8 + 5000 x 4) : (5000 x 8 + 7000 x 4) = 13:17 So, total annual profit received by them together = 3400 x (30/17) = Rs.6000
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