Question
Sumit started a company with an initial investment.
After 3 months, Tarun joined him with Rs. 1000 more than Sumit. If their profit shares after one year are in the ratio 7:9, what was Sumit’s investment?Solution
ATQ,
Let Sumit’s investment be Rs. 'Y'
So, Tarun’s investment = Rs. (Y + 1000)
Profit ratio = (Y × 12) : {(Y + 1000) × 9}
ATQ,
(Y × 12) ÷ {(Y + 1000) × 9} = 7/9
Or, 12Y × 9 = 7 × (9Y + 9000)
Or, 108Y = 63Y + 63,000
So, 45Y = 63,000
∴ Y = 63,000 ÷ 45 = Rs. 1400
Therefore, Sumit’s initial investment = Rs. 1400
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