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.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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