Question

A and B are two business partners. A invests Rs. 50000 for 8 months and B invests Rs. 20000 for 10 months. Find the share of A from the total profit of Rs. 60000.

1. Rs. 30000
2. Rs. 40000
3. Rs. 20000
4. Rs. 45000
5. None of these

Answer 1

Correct Answer - Option 2 : Rs. 40000

Given:

A Invests (I₁) = Rs. 50000

Time (t₁) = 8 months

B Invests (I₂) = Rs. 20000

Time (t₂) = 10 months

Total profit = Rs. 60000

Formula:

Profit = Investments × time

Profit (P1)/Profit (P) = (I₁/I₂) × (t₁/t₂)

Calculation:

We know that –

Profit (P1)/Profit (P2) = (I₁/I₂) × (t₁/t₂) …….. (1)

Put all the given values in equation (1) then we get

(P1/P2) = (50000/20000) × (8/10)

⇒ (5/2) × (8/10)

⇒ 40/20

⇒ 2/1

Now,

Profit shares of A = (2/3) × 60000

⇒ 2 × 20000

⇒ 40000

∴ The Profit shares of A will be Rs. 40000