Multiple choice

Chandan, Ramesh and Mohan started the business with the investment in the ratio of 2:3:4 and the investment period of Chandan, Ramesh and Mohan is 8 months, 10 months and 6 months respectively. At the end of business, the difference between the profits shares of Chandan and Mohan is Rs.4000, find the total profit of the business?

  1. Rs.35000

  2. Rs.40000

  3. Rs.42000

  4. Rs.28000

  5. None of these

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A Correct answer
Explanation

Profit share ratio = investment ratio × time ratio. Chandan: 2×8 = 16, Ramesh: 3×10 = 30, Mohan: 4×6 = 24. Ratio is 16:30:24 (or 8:15:12). Total ratio units = 35. Difference between Chandan and Mohan = 15 - 8 = 7 units. If 7 units = Rs. 4000, then 1 unit = Rs. 4000/7. Total profit = 35 × (4000/7) = Rs. 35000. The ratio considers both investment amount and time duration.