Question
Nikhil and Saurabh started a business together by
investing a total of Rs. 24000 in the ratio of 7:5, respectively. After 6 months, Nikhil increased his investment by Rs. 3000 and after 2 more months, Saurabh decreased his investment by Rs. 2000. Find the total annual profit earned, if the difference between their annual profits is Rs. 3700.Solution
Let the total profit earned at the end of the year be Rs. 'p' Initial investment done by Nikhil = 24000 X (7/12) = Rs. 14000 Initial investment done by Saurabh = 24000 - 14000 = Rs. 10000 Profits sharing ratio of Nikhil and Saurabh = (14000 X 6 + 17000 X 6):(10000 X 8 + 8000 X 4) = (84 + 102):(80 + 32) = 186:112 = 93:56 According to question: (93p/149) - (56p/149) = 3700 Or, (37p/149) = 3700 Total profit earned (p) = (3700 X 149)/37 = Rs. 14900
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