Question
A and B started a business with initial investments of Rs. 12000 and Rs. 28000 respectively. After one year, a profit of Rs. 8000 is earned. A being a working partner gets 25% 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 15% compound interest compounded annually. Find the interest earned by A after 2 years.
Solution
The ratio of their investments = 12000:28000 = 3:7 Profit share of A for being a working partner = 0.25 times; 8000= Rs. 2000 Profit share of A for his investment = 3/10 times; 0.75 times; 8000 = Rs. 1800 Total profit of A = Rs. 1800 Compound interest earned by A = 3800{(1 + 0.15)2 ndash; 1} = Rs. 1225.5
More Simple and compound interest Questions
- A person earns Rs. 240 as compound interest on a sum for 2 years at 3% per annum, compounded yearly. What would be the simple interest on the same amount a...
- ₹2,500, when invested for 8 years at a given rate of simple interest per year, amounted to ₹3,725 on maturity. What was the rate of simple interest that wa...
- Rs. 5000 when invested at simple interest of r% p.a. amounts to Rs. 7200 in 24 months. If the same sum had been invested for 1 year at compound interest of...
- The simple interest on a sum for 2 years at r% per annum is Rs 500 and the compound interest (compounded annually) on the same sum for 2 years at the same ...
- An amount of Rs. 2400 is invested at an annual compound interest rate of 20%, while another amount of Rs. 1600 is invested simultaneously at an annual simp...
- A man invested certain sum at 5% p.a. simple interest for his son who was 10 years old. If the amount received by the son when he was 30 years old is Rs. 4...
- A man invested Rs. 6,000 at simple interest of 'x%' p.a. and received Rs. 12,000 after 2 years. If he had invested Rs. 30,000 at simple interest of 'x%' p....
- If the simple interest for 5 years is equal to 20% of the principal, then the interest will be equal to the principal after ________ years.
- A sum of ₹12,000 earns ₹1,920 as simple interest in 4 years. What will be the compound interest on the same sum in 2 years at the same rate of interest per...
- Ankit deposits a sum of money at an annual compound interest rate of 12%. Over a period of 3 years, the interest accumulated amounts to Rs. 864. If he incr...
