Question
Aman, Bhanu, and Chinky commenced a business with
initial investments in the ratio 5:7:8, respectively. After one year, they made additional investments in the ratio 2:1:5, respectively. Aman, being the active working partner, is entitled to 20% of the profit for managing the business. The remaining profit is distributed among Aman, Bhanu, and Chinky based on the ratio of their total investments. Determine Aman's share of the profit out of the total profit of Rs. 3,500 after two years.Solution
ATQ, Let the initial investments of Aman, Bhanu and Chinky be Rs. 5a, Rs. 7a and Rs. 8a respectively. Let the additional investments of Aman, Bhanu and Chinky be Rs. 2b, Rs. b and Rs. 5b respectively. So the ratio of their profits = (5a + 5a + 2b): (7a + 7a + b): (8a + 8a + 5b) = (10a + 2b): (14a + b): (16a + 5b) Profit share of Aman for being an active working partner = 0.20 × 3500 = Rs. 700 Profit share of Aman for his investment = 0.80 × 3500 × (10a + 2b)/(40a + 8b) = Rs. 700 So the total amount of profit received by Aman = 700 + 700 = Rs.1400
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