# Two persons A and B started a business. If A and B invested their capital in the business for 24 months and 8 months respectively and the ratio of the

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Two persons A and B started a business. If A and B invested their capital in the business for 24 months and 8 months respectively and the ratio of their profit from the business is 21 : 16, then what is the initial capital invested by A if B invested Rs. 32,000?
1. Rs. 10,000
2. Rs. 14,000
3. Rs. 20,000
4. Rs. 18,000
5. None of these

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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.