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.**