Question

Two friends A and B invest in a business in the ratio 2 ∶ 3. 40% of total profit, they donate in charity and remaining profit distributed amongst themselves. If share of A was Rs. 10,800, then find total profit earned from their business (In Rs.)
1. 30,000
2. 45,000
3. 50,000
4. 45,500

Answer 1

Correct Answer - Option 2 : 45,000

Given:

Ratio of investment of A and B = 2 ∶ 3

Profit of A = Rs. 10800

Concept used:

Ratio of product of time and investment = Ratio of profit

When the investments made by all partners are for the same time period, then profit is distributed amongst them in the ratio of their investments

Calculation:

Ratio of investment = 2 ∶ 3

Ratio of profit = 2 ∶ 3 (Using concept)

Let, profit of A and B be 2X and 3X respectively

Total profit = 5X

Profit after donation = 5X – 40% of 5X = 5X – 2/5 × 5X = 3X

Now, profit earned by A = 2/5 × 3X = 6X/5 (Using ratio concept)

⇒ 6X/5 = 10800 (Given)

⇒ X = (10800 × 5)/6 = 9000

Total profit before donation = 5X = 9000 × 5 = 45000

∴The total profit earned from their business is Rs. 45,000.