Question

Suresh, Ramesh and Garish invested ₹ 7000, ₹ 5000 and ₹ 3000 respectively in a business. Suresh left after six months and Ramesh left after eight months. If after one year the total loss is ₹ 11800, then what will be the share of Suresh?

1. ₹ 5000
2. ₹ 6000
3. ₹ 5500
4. ₹ 4500
5. ₹ 4200

Answer 1

Correct Answer - Option 5 : ₹ 4200

Given:

Investment of Suresh = ₹ 7000

Investment of Ramesh = ₹ 5000

Investment of Garish = ₹ 3000

Total loss at the end of 1 year = ₹ 11800

Concept used:

Loss = Investment × time

Calculation:

Suresh invested for 6 months

Ramesh invested for 8 months

Garish invested for 12 months

Loss ratio = (7000 × 6) : (5000 × 8) : (3000 × 12)

⇒ Loss ratio = 21 : 20 : 18

Total loss in terms of ratio = 21 + 20 + 18 = 59

⇒ Loss share of Suresh = (11800/59) × 21 = 4200

∴ The loss share of Suresh is ₹ 4200.