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    Question

    Raj, Sam, and Tina began a business with initial

    investments in the ratio 6:5:4 respectively. After one year, Tina, Raj, and Sam made additional investments in the ratio 2:3:1 respectively. Raj is the active working partner, so 30% of the profit is given to him for managing the business, and the rest is distributed among them in the ratio of their investments. Find the profit share of Raj out of the total profit of Rs. 2,500 after two years.
    A Rs.1200 Correct Answer Incorrect Answer
    B Rs.1000 Correct Answer Incorrect Answer
    C Rs.1500 Correct Answer Incorrect Answer
    D Rs.1550 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    According to the question: Initial investments of Raj, Sam, and Tina: Rs. 6x, Rs. 5x, and Rs. 4x respectively. Additional investments of Tina, Raj, and Sam: Rs. 2y, Rs. 3y, and Rs. y respectively. Ratio of their profits: (6x + 3y):(5x + y):(4x + 2y) = (9x + 3y):(6x + y):(8x + 2y) Profit share of Raj for being an active working partner = 0.30 × 2500 = Rs. 750 Profit share of Raj for his investment = 0.70 × 2500 × (9x + 3y)/(23x + 6y) = Rs. 750 Total amount of profit received by Raj = 750 + 750 = Rs. 1500

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