Correct Answer - Option 2 : Rs. 14,000
Given:
A and B invested their capital in the business for 24 months and 8 months respectively.
Ratio of their profit from the business = 21 : 16.
Initial investment of B = Rs. 60,000.
Formula used:
Profit = Initial capital × Time
Calculations:
Let the profit share of A and B is 21x and 16x respectively.
Profit = Initial capital × Time
⇒ Initial capital = Profit/Time
Ratio of initial capital of A to B = (21x/24) : (16x/8) = = 7 : 16
∵ B invested Rs. 32,000
Amount invested by A = 32,000 × 7/16 = Rs. 14,000
∴ The initial capital invested by A was Rs. 14,000.