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?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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