Question
Amit and Rakesh started a business with initial
investments of Rs. 2500 and Rs. 2000, respectively. After 6 months, Amit increased his investment by Rs. 400, whereas Rakesh reduced his investment by Rs. 200. If the total profit after 12 months is Rs. 8400, determine Amit's share of the profit.Solution
ATQ;
Ratio of profit share of Amit and Rakesh = [2500 × 12 + 400 × 6] : [2000 × 12 – 200 × 6] = 30000 : 18000 = 5:3
Profit share of Amit = 5/8 × 8400 = Rs. 5250
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