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    Question

    Determine the initial investment made by 'Adam' if both

    'Adam' and 'Zampa' jointly invested Rs. 7000 in a startup business. After 7 months, 'Adam' added 20% more to his initial investment, and 'Zampa' withdrew 40% of his initial investment. At the end of one year, 'Zampa's profit share out of the total profit of Rs. 4712 is Rs. 3100.
    A 2000 Correct Answer Incorrect Answer
    B 2500 Correct Answer Incorrect Answer
    C 3000 Correct Answer Incorrect Answer
    D 3200 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    We can say that initial investment made by Adam is Rs.'a' Initial investment made by Zampa is Rs. (7000 – a) Ratio of profit share of Adam to Zampa = (a × 7 + 1.2a × 5):[(7000 – a) × 7 + 0.6 × (7000 – a) × 5]  = 13a:(70000 – 10a) According to question; [13a/(70000 – 10a)] = (1612/3100) = 13/25 325a = 910000 – 130a 455a = 910000 a = 2000 Initial investment made by Adam = Rs.2000

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