Question

    P and Q started a business by investing Rs. 2500 and Rs.

    4000 respectively. After 12 months, P increased his capital by 40% and Q decreased his capital by Rs. 500. If total profit at the end of 2 years was Rs. 8,400, what is the difference between profit shares of P and Q?
    A Rs.840 Correct Answer Incorrect Answer
    B Rs.520 Correct Answer Incorrect Answer
    C Rs.660 Correct Answer Incorrect Answer
    D Rs.700 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    Increased investment of P = 2500 × 1.40 = Rs. 3,500

    Decreased investment of Q = 4000 – 500 = Rs. 3,500

    So, ratio of profit shares of P and Q = (2500 × 12 + 3500 × 12):(4000 × 12 + 3500 × 12) = 12:15

    So, difference between profit shares = 8400 × {(15 – 12) ÷ (15 + 12)} = Rs. 840

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