Question
‘M’ and ‘N’ started a business by investing Rs.
‘x’ and Rs. ‘x – 500’ respectively. If the total annual profit is Rs. 60,000 and ‘M’ received Rs. 36,000, then find the initial investment made by ‘N’.Solution
ATQ, Ratio of profit share of ‘M’ and ‘N’ respectively = {(x × 12):(x – 500) × 12} = (12x):(12x – 6000) ATQ; {12x/(24x – 6000)} = (36000/60000) Or, 12x/(24x – 6000) = 3/5 Cross-multiplying: 5 × 12x = 3 × (24x – 6000) 60x = 72x – 18000 18000 = 12x x = 1500 Initial investment made by ‘N’ = 1500 – 500 = Rs. 1000
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