New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Deepak, Mohit, and Sneha started a business with initial

    investments in the ratio 3:4:6 respectively. After one year, Sneha, Deepak, and Mohit made additional investments in the ratio 5:3:2 respectively. Deepak is the active working partner, so 10% 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 Deepak out of the total profit of Rs. 4,000 after two years.
    A Rs.1200 Correct Answer Incorrect Answer
    B Rs.1400 Correct Answer Incorrect Answer
    C Rs.1360 Correct Answer Incorrect Answer
    D Rs.1250 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    According to the question: Initial investments of Deepak, Mohit, and Sneha: Rs. 3x, Rs. 4x, and Rs. 6x respectively. Additional investments of Sneha, Deepak, and Mohit: Rs. 5y, Rs. 3y, and Rs. 2y respectively. Ratio of their profits: (3x + 3y):(4x + 2y):(6x + 5y) = (6x + 3y):(8x + 2y):(11x + 5y) Profit share of Deepak for being an active working partner = 0.10 × 4000 = Rs. 400 Profit share of Deepak for his investment = 0.90 × 4000 × (6x + 3y)/(25x + 10y) = Rs. 960 Total amount of profit received by Deepak = 400 + 960 = Rs. 1360

    Practice Next