Question
A and B started a business with initial investments of Rs. 28000 and Rs. 30000 respectively. After one year, a profit of Rs. 5800 is earned. A being a working partner gets 30% 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.
Solution
The ratio of their investments = 28000:30000 = 14:15 Profit share of A for being a working partner = 0.30 times; 5800= Rs. 1740 Profit share of A for his investment = 14/29 times; 0.70 times; 5800 = Rs. 1960 Total profit of A = Rs. 1960 Compound interest earned by A = 3700{(1 + 0.10)2ndash; 1} = Rs. 777
More Simple and compound interest Questions
- Mark invested Rs 15,000 in a scheme at simple interest 20% per annum. After three years he withdrew the principal amount plus invested the entire amount in...
- Pawan invested Rs. 1200 for 4 months, Qureshi invested Rs. 1600 for 6 months, and Raju invested Rs. 2000 for 12 months in a business. By what percentage is...
- Ravi invested Rs. 10,200 at 20% p.a. for 2 years and Rs. 11,500 at 28% p.a. for 2 years on simple interest. What is the total interest he earned?
- At what % of simple interest per annum will Rs. 320 amount to Rs. 480 in five years?
- Sunil invested Rs. ‘4x’ in scheme ‘A’ offering simple interest of 25% p.a. and reinvested the interest earned from scheme ‘A’ at the end of 4 years in sche...
- If the ratio of the sum invested and simple interest received after 1 year is 20:9 respectively, then find the rate of interest.
- Ajay invested Rs.a in SI at 7% rate of interest per annum for 9 years. Vishal invested the same amount in SI at 5% rate of interest per annum for 3 years a...
- A sum invested at compound interest of 'r%' p.a., compounded annually amounts to Rs. 750 at the end of second year and Rs. 900 at the end of 3rd year. Find...
- Rajan invested Rs. 18,000 in a scheme offering x% p.a. simple interest for x years. Interest earned by him after ‘x’ years is Rs. 11520. Find the interest ...
- The simple interest received on a sum at the rate of 4 percent per annum is 3/5 of the sum. What is the time period?
