Question

Rattan and Karan started a business by investing Rs. 18000 and Rs. 25000 respectively. After 4 months Rattan invest Rs. 2000 more in business What is the share of Karan in the profit of Rs. 13,300 earned at the end of the year?
1. Rs. 4500
2. Rs. 4000
3. Rs. 7500
4. Rs. 6000

Answer 1

Correct Answer - Option 3 : Rs. 7500

Given 

Rattan invest in starting = Rs. 18,000 

Karan invest = Rs. 25,000

Formula Used 

Investment = capital × time 

The ratio of profit is equal to ratio of investment 

Calculation 

Rattan investment in 4 months = 18,000 × 4 = Rs. 72,000 

Rattan investment  after 4 months = 20,000 × 8 = 1,60,000

Total investment by Rattan = 72,000 + 1,60,000 = 2,32,000 

Karan investment for 12 months = 25,000 × 12 = 3,00,000 

⇒ Investment Ratio (Rattan : karan) = 2,32,000 : 3,00,000 = 58 : 75 

⇒ Profit ratio = 58 : 75 

Total profit = 13300

⇒ 133x = 13300 

⇒ x = 100 

⇒ Karan's profit = 75x = 75 × 100 = Rs. 7,500 

∴ The share of profit of Karan at the end of 1 year is Rs. 7,500