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      Question

      'A' and 'B' started a business by investing Rs. 8,000 and Rs. 10,000, respectively. 'A' invested for 10 months and 'B' invested for 12 months. 'A' also works as manager in the business for which he's entitled to receive a commission of 20% out of total profit. If at the end of the year, the business earned a total profit of Rs. 12,500, then find the total amount received by 'A'.

      A Rs. 5,000 Correct Answer Incorrect Answer
      B Rs. 6,500 Correct Answer Incorrect Answer
      C Rs. 7,200 Correct Answer Incorrect Answer
      D Rs. 7,200 Correct Answer Incorrect Answer
      E Rs. 5,500 Correct Answer Incorrect Answer

      Solution

      Ratio of profit shares of 'A' and 'B' at the end of the year = {8000 X 10}:{10000 X 12} = 2:3 Total amount received by 'A' = commission earned by 'A' + Profit share of 'A' So, commission earned by 'A' = 12500 X 0.2 = Rs. 2,500 So, net profit to be distributed between 'A' and 'B' = 12500 - 2500 = Rs. 10,000 So, profit share of 'A' = 10000 X (2/5) = Rs. 4,000 So, total amount received by 'A' = 4000 + 2500 = Rs. 6,500

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