Question
A and B launched a business with initial investments of
Rs. 2000 and Rs. 3600, respectively. Three months into the venture, C came on board with an investment that was 25% higher than A's initial investment. Six months after the start, both A and B increased their stakes by injecting extra funds of Rs. 500 and Rs. 400, respectively. If the total profit at the end of the year amounted to Rs. 15850, calculate B's share of the profit.Solution
Initial investment of A = Rs. 2000 Initial investment of B = Rs. 3600 Initial investment of C = 2000 × 1.25 = Rs 2500. After 6 months, Total investment of A = 2000 + 500 = Rs. 2500 Total investment of B = 3600 + 400 = Rs. 4000 Ratio of share of profit: A: B: C = (2000 × 6 + 2500 × 6): (3600 × 6 + 4000 × 6): (2500 × 9) = (90: 152: 75) Therefore, profit share of B = [152/ (90 + 152 + 75)] × 15850 = Rs. 7600
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