📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • 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.
      A Rs. 977 Correct Answer Incorrect Answer
      B Rs. 877 Correct Answer Incorrect Answer
      C Rs. 777 Correct Answer Incorrect Answer
      D Rs. 677 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      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

      Practice Next
      ask-question