Multiple choice

In a business, X and Y invest Rs. 40,000 and Rs. 30,000, respectively. 30% of the profit goes to charity, the rest being divided in the proportion of their capitals out of a total profit of Rs. 10,000. X's share in the profit is

  1. Rs. 4000

  2. Rs. 3000

  3. Rs. 8000

  4. Rs. 7000

  5. Rs. 6000
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A Correct answer
Explanation

Total profit is 10,000. Charity takes 30%, leaving 7,000. X and Y invest in a 4:3 ratio. X's share = (4/7) * 7,000 = 4,000.

AI explanation

The profit sharing ratio between X and Y is the ratio of their investments, which is 40000:30000, simplifying to 4:3. Because 30% of the total profit goes to charity, the remaining 70% of the profit is distributed between the partners, meaning the distributable profit is 70% of Rs. 10,000, equaling Rs. 7,000. X's share is 4/7 of the distributable profit, so X receives (4/7) * 7000, which equals Rs. 4000.

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