Question

A starts a taxi service by investing Rs. 25 lakhs. After 3 months, B joins the business by investing RS 40 lakhs then 4 months after B joined, C too joins by investing Rs. 50 lakhs. One year after A started the business they make Rs 2,73,000 in profit . What is C's share of the profit(in Rs)?
1. Rs1,00,000
2. Rs.75,000
3. Rs.1,25,000
4. Rs.1,50,000
5. none of the above

Answer 1

Correct Answer - Option 2 : Rs.75,000

Given

A starts a taxi service by investing Rs. 25 lakhs

After 3 months, B joins the business by investing Rs 40 lakhs

4 months after B joined, C to joins by investing Rs. 50 lakhs

Concept used

The ratio of investing money by three is same as the ratio of profit they earned

Calculation

A start business by investing 25 lakh rupees for 12 month

So total invest = 2500000 × 12

B invest  40 lakh money after 3 months of A

B invest 40 lakh for 9 months

B invest = 4000000 × 9

C invest money 5 months after B 

So C invest 5000000 for 5 months

The ratio of A, B and C investing = 2500000 × 12 : 4000000 × 9 : 5000000 × 5

⇒ 30 : 36 : 25

Profit ratio is also same i.e 30 : 36 : 25

Total profit  is Rs.273000

Profit share of C is 25/(30 + 36 + 25){273000}

∴ C's share of the Profit is Rs.75,000