Multiple choice

A, B and C invested Rs. 25,000, Rs. 30,000 and Rs. 40,000 in a business, respectively. After 4 months A withdrew his capital, and after 2 more months B invested Rs. 10,000. At the end of the year they got a profit of Rs. 20,400. Find the share of A in the profit.

  1. Rs. 8000

  2. Rs. 2040

  3. Rs. 4000

  4. Rs. 5420

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A's investment: 25000 * 4 = 100,000. B's: 30000 * 6 + 40000 * 6 = 180,000 + 240,000 = 420,000. C's: 40000 * 12 = 480,000. Ratio A:B:C = 10:42:48 = 5:21:24. Total = 50 parts. A's share = (5/50) * 20400 = 2040.

AI explanation

The profit ratio is determined by multiplying each partner's investment by the number of months it was active. A invested 25000 for 4 months (100000), B invested 30000 for 6 months and then 40000 for 6 months (180000 + 240000 = 420000), and C invested 40000 for 12 months (480000). The ratio of their shares is 100000 : 420000 : 480000, which simplifies to 5 : 21 : 24, making the sum 50 parts. A's share of the total profit of 20400 is calculated as 5/50 of 20400, which equals 2040.

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