Question
‘X’ and ‘Y’ started a business by investing Rs.
2,500 and Rs. 4,000 respectively. After 12 months, ‘X’ increased his investment by 40% while ‘Y’ reduced his investment by Rs. 500. If the total profit at the end of 2 years was Rs. 7,200, what is the difference between their profit shares?Solution
ATQ,
Increased investment of ‘X’ = 2500 × 1.40 = Rs. 3,500
Decreased investment of ‘Y’ = 4000 – 500 = Rs. 3,500
So, ratio of profit shares of ‘X’ and ‘Y’ = (2500 × 12 + 3500 × 12):(4000 × 12 + 3500 × 12) = 12:15
So, difference between profit shares of ‘X’ and ‘Y’ = 7200 × {(15 – 12) ÷ (15 + 12)} = Rs. 800
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