Question
M and N started a business by investing Rs.5000 and
Rs.6800 respectively. After 6 months, M and N increased their investments by 40% and Rs.2400 respectively. The annual profit share of N was Rs.1600. Find the total annual profit received by them together.Solution
Increased investment of M = 5000 x 1.4 = Rs.7000 Increased investment of N = 6800 + 2400 = Rs.9200 Ratio of profit share of M and N = (5000 x 6 + 7000 x 6) : (6800 x 6 + 9200 x 6) = 3:4 So, total annual profit received by them together = 1600 x (7/4) = Rs.2800
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