Question

Jay and Diya invest Rs.40,000 and 60,000 to start a business. after 1 year they pay 30% of their profit as corporate taxes. The rest of the profit is distributed among  them according to their investment share. Jay got Rs.14,000 as his share. What is the total profit? 
1. 20000
2. 36000
3. 50000
4. 140000
5. 48000

Answer 1

Correct Answer - Option 3 : 50000

Calculation:

Ratio of investment of Jay and Diya  40000 : 60000

⇒ Jay : Diya = 2 : 3

⇒ Let be total profit = x

⇒ profit left after Rs x(100 - 30)% = 0.7x

⇒ Jay share in profit = Rs.14000 = (profit left after taxes) × (ratio of Jay share)

⇒ 14000 = 0.7× 2/5 

⇒ 1400 × 5 = 1.4x

⇒ (14000× 5) /1.4x = 50,000

∴ Total profit = 50,000