Question

A and B invested amounts of Rs. 40,000 and Rs. 75,000 respectively. At the end of five years they got a total profit of Rs. 46,000. What is A’s share in the profit?
1. Rs. 16,000
2. Rs. 15,000
3. Rs. 15,500
4. Rs. 16,500

Answer 1

Correct Answer - Option 1 : Rs. 16,000

Given:

Investment of A = Rs. 40,000

Investment of B = Rs. 75,000

Calculation:

The ratio of their profit is in the ratio of their investment and the time they have invested for

Ratio of the profit of A ∶ B = 40000 × 5 ∶ 75000 × 5

⇒ Ratio of the profit of A ∶ B = 8 ∶ 15

Let the profit of A be 8x and B be 15x

8x + 15x = 46000

⇒ 23x = 46000

⇒ x = 46000/23 = 2000

Profit of A = 8x = 8 × 2000

⇒ Profit of A = 16,000

∴ Share of profit of A is Rs. 16,000