Multiple choice

Facebook and Google invested in a new infotainment venture for 5 years. The ratio of their investments is 3 : 2. If 5% of the annual profit is donated to Bill Gates Foundation for charity and Facebook's annual profit share is Rs. 855 crore, find the total profits (in Rs. crore) of each, after 5 years.

  1. 3000, 2200

  2. 3500, 2250

  3. 3750, 2850

  4. 4275, 2850

  5. None of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
AI explanation

Let the total annual profit be P, and since the investment ratio is 3 to 2, Facebook's share before charity is 3/5 of P and Google's is 2/5 of P. After a 5% charity deduction, the distributed profit is 0.95P, making Facebook's actual annual share 0.95 multiplied by 3/5 of P, which equals 0.57P. Since Facebook's annual profit share is Rs. 855 crore, solving 0.57P equals 855 gives a total annual profit of Rs. 1,500 crore, making Google's annual share Rs. 570 crore. Over 5 years, multiplying the annual profits by 5 shows Facebook earns Rs. 4,275 crore and Google earns Rs. 2,850 crore.