Question

Anuj and Bhumi invested Rs. 20,000 and Rs. 24,000 respectively in a business. Bhumi disinvested Rs. 4000 from the business  after 8 months. At the end of the first year they earned a profit of Rs.1280. What is the share of Anuj in the profit?

1. Rs. 600
2. Rs. 700
3. Rs. 800
4. Rs. 900

Answer 1

Correct Answer - Option 1 : Rs. 600

Given 

Anuj invest capital = Rs. 20000

Bhumi invest capital = Rs. 24000 

Formula Used 

Investment = capital × time 

The ratio of profit is equal to the ratio of investment 

Calculation 

Anuj investment for 12 months = 20000 × 12 = 240000

Bhumi investment for 8 months = 24000 × 8 = 192000 

Bhumi invest for after 8  months = 20000 × 4 = 80000 

total investment by Bhumi = 192000 + 80000 = 272000 

⇒ Investment Ratio (Anuj : Bhumi) = 240000 : 272000 = 15 : 17 

⇒ Profit Ratio = 15 : 17 

⇒ Total profit = 1280 

⇒ 32x = 1280 

⇒ x = 40 

⇒ Anuj's profit = 15x = 15 × 40 = 600

∴ The share of profit of anuj is Rs. 600