Question

Anu and Bharti invested Rs. 20,000 and Rs. 24,000 respectively in a business. Bharti left the business with his money after 8 months. At the end of the first year they earned a profit of Rs. 1,620. What is the share of Anu in the profit?
1. Rs. 1,250
2. Rs. 720
3. Rs. 1100
4. Rs. 900

Answer 1

Correct Answer - Option 4 : Rs. 900

Given:

Amount invested by Anu = Rs.20,000

Amount invested by Bharti = Rs.24,000

Time period of Anu's investment = 12 months

Time period of Bharti's investment = 8 months

Formula Used:

Ratio of the shares of A and B in the profit = [(Invested Amount × Time period of investment) for A]/[(Invested Amount × Time period of investment) for B]

Calculation:

We can hence obtain the ratio of the shares in the profit for A and B as:

⇒ 20000 × 12 ∶ 24000 × 8 = 5 ∶ 4

So, Anu's share in the profit = (5/9) × 1620 = 900

∴ Anu's share in the overall profit is Rs.900