Question
‘M’ starts a business with Rs. 2,500. After 4
months, ‘N’ joins by investing 40% of M’s capital. If the total annual profit is Rs. 9,600, what is the share of ‘N’?Solution
M's investment = ₹2500 for 12 months = 2500×12 = 30000 N's investment = 40% of 2500 = ₹1000 for 8 months = 1000×8 = 8000 Total investment units = 30000+8000 = 38000 N's profit share = (8000/38000) × 9600 = 4/19 × 9600 = ₹2021.05
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