Multiple choice

A and B enter into a partnership. A invests Rs. 16000 for 8 months and B remains in the business for 4 months. Out of a total annual profit, B claims 2/7th of the profit. The investment of B was

  1. 10500

  2. 11900

  3. 13600

  4. 12800
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A's investment = 16000 * 8 = 128000. Let B's investment be x. B's investment = x * 4 = 4x. Profit ratio = 128000 : 4x = 32000 : x. B's share = x / (32000 + x) = 2/7. 7x = 64000 + 2x, so 5x = 64000, x = 12800.

AI explanation

Since B claims 2/7th of the profit, A claims 5/7th, making their profit ratio 5 to 2. The ratio of profits equals the ratio of the product of investment and time, so 16000 * 8 divided by B's investment times 4 equals 5 divided by 2. This gives 128000 divided by 4 times B's investment equals 5 divided by 2. Solving this yields B's investment as Rs. 12800.

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