Multiple choice

Two businessmen, A and B, invested in a business in the ratio 5 : 8. They decided to reinvest 30% of the profit that they earned back into the business. They distributed the remaining profit amongst themselves. If A's share of the profit was Rs. 87,500, then how much profit (in Rs.) did the business make?

  1. 2,27,000

  2. 2,50,000

  3. 3,75,000

  4. 3,25,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let total profit be P. After reinvesting 30%, 0.7P remains. A's share is (5/13) * 0.7P = 87500. Solving for P: P = (87500 * 13) / (5 * 0.7) = 1137500 / 3.5 = 325000.

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