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    Question

    ‘M’ began a business by investing a certain amount.

    After 6 months, ‘N’ joined with Rs. 800 more than M. If their profit sharing ratio at the year-end is 3:4 respectively, find M’s investment.
    A Rs.480 Correct Answer Incorrect Answer
    B Rs.320 Correct Answer Incorrect Answer
    C Rs.210 Correct Answer Incorrect Answer
    D Rs.350 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let M’s investment = Rs. Y

    Then N’s investment = Rs. (Y + 800)

    Profit ratio = (Y × 12) : {(Y + 800) × 6}

    ATQ,

    (Y × 12) ÷ {(Y + 800) × 6} = 3/4

    => 12Y × 4 = 3 × (6Y + 4,800)

    => 48Y = 18Y + 14,400

    => 30Y = 14,400

    => Y = 14,400 ÷ 30 = Rs. 480

    Therefore, M’s initial investment = Rs. 480

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