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    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.
    A Rs.1400 Correct Answer Incorrect Answer
    B Rs.1500 Correct Answer Incorrect Answer
    C Rs.1450 Correct Answer Incorrect Answer
    D Rs.1250 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    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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