Question

A starts a business with Rs. 4500 and after 7 months, B joins with A as his partner. After a year, the profit is divided in the ratio 3 : 2. What is the sum of (A + B)'s capital?
1. Rs. 12,000
2. Rs. 12,500
3. Rs. 11,700
4. Rs. 11,500

Answer 1

Correct Answer - Option 3 : Rs. 11,700

Given:

A starts a business with Rs. 4500 and after 7 months, B joins with A as his partner.

Calculations:

Let B's investment be Rs. x.

A’s an investment of 4500 is for 12 months B’s investment is for 5 months only.

At the end of the year, the profit is divided in the ratio 3 ∶ 2 and it must be equal to the ratio of the product, (Amount × time)

\(\Rightarrow \frac{12\ \times \ 4500}{5x}\ =\ \frac{3}{2}\)

\(\Rightarrow x\ =\ \frac{12\ \times \ 4500}{5}\ \times \ \frac{2}{3}\)

⇒ x = 7200

(A + B)'s capital = 7200 + 4500 = 11700

∴ The sum of (A + B)'s capital is Rs. 11700.