Question
Arjun and Bheem invested in a business with their
initial investments in the ratio 5:6, respectively. After one year, Arjun increased his investment by 40%, while Bheem increased his by 50%. If the total profit earned at the end of two years was Rs. 9,000, what was Arjun’s share of the profit?Solution
ATQ,
Let the initial investments of ‘Arjun’ and ‘Bheem’ be Rs. ‘5x’ and Rs. ‘6x’, respectively
Then, increased investment of ‘Arjun’ = 5x × 1.4 = Rs. ‘7x’
Increased investment of ‘Bheem’ = 6x × 1.5 = Rs. ‘9x’
So, ratio of profit shares of ‘Arjun’ and ‘Bheem’ = (5x + 7x):(6x + 9x) = 12x:15x = 4:5
So, profit share of ‘Arjun’ at the end of two years = Rs. 9000 × (4/9) = Rs. 4,000
The capital asset pricing model (CAPM) suggest that, the cost of equity is a trade-off between :
Which two components form the Ayushman Bharat Scheme?
Which ratios are a measure of the speed with which various accounts are converted into sales or cash?
In the context of Cash Credit (CC) facilities, what does the term 'Drawing Power' refer to?
Which of the following is an example of a risk avoidance technique?
The term “SICR” discussed in the recently published RBI's released Discussion Paper on Introduction of Expected Credit Loss (ECL) Framework for Prov...
Comparison of a company’s financial results to other peer companies for the same period is called:
For market risk, the minimum capital requirement is expressed in terms of two separately calculated charges. Which of the following are those two risks ...
Which of the following is not a resolution method under RBI’s Prudential Framework for stressed assets?
How much financing did the World Bank approve to help India accelerate low carbon energy development in its second round?