Question
Nitin, Rahul, and Anjali started a business with initial
investments in the ratio 5:6:7 respectively. After one year, Anjali, Nitin, and Rahul made additional investments in the ratio 3:2:4 respectively. In this business, Nitin is the active working partner, so 20% 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 Nitin out of the total profit of Rs. 2,800 after two years.Solution
According to the question: Initial investments of Nitin, Rahul, and Anjali: Rs. 5x, Rs. 6x, and Rs. 7x respectively. Additional investments of Anjali, Nitin, and Rahul: Rs. 3y, Rs. 2y, and Rs. 4y respectively. Ratio of their profits: (5x + 2y):(6x + 4y):(7x + 3y) = (7x + 2y):(10x + 4y):(14x + 3y) Profit share of Nitin for being an active working partner = 0.20 × 2800 = Rs. 560 Profit share of Nitin for his investment = 0.80 × 2800 × (7x + 2y)/(31x + 9y) = Rs. 720 Total amount of profit received by Nitin = 560 + 720 = Rs. 1280
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