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    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?
    A Rs.800 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 ‘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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