πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      A and B started a business with initial investments of

      Rs. 15000 and Rs. 25000 respectively. After one year, a profit of Rs. 20000 is earned. A being a working partner gets 32% of the profit for managing the business and rest of the profit is shared between them in the ratio of their investments. A invested his whole profit in a scheme offering 10% compound interest compounded annually. Find the interest earned by A after 2 years.
      A Rs. 2103 Correct Answer Incorrect Answer
      B Rs. 2093 Correct Answer Incorrect Answer
      C Rs. 2193 Correct Answer Incorrect Answer
      D Rs. 2415 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      The ratio of their investments = 15000:25000 = 3:5 Profit share of A for being a working partner = 0.32 Γ— 20000 = Rs. 6400 Profit share of A for his investment = 3/8 Γ— 0.68 Γ— 20000 = Rs. 5100 Total profit of A = Rs. 5100 Compound interest earned by A = 11500{(1 + 0.10)2 – 1} = Rs. 2415

      Practice Next
      More Simple and compound interest Questions
      ask-question