Multiple choice

Two partners invest Rs. $12,500$ and Rs. $8,500$ respectively in their business and arrange that $60$% of the profit should be divided equally between them and the remaining profit treated as interest on the capital. If one partners share is Rs. $300$ more than that of the other, find the whole amount of the profit.

  1. Rs. $4,000$
  2. Rs. $5,000$
  3. Rs. $3,937.50$
  4. Rs. $2,625$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Investment ratio = 12500 : 8500 = 25 : 17. 60% of profit is divided equally (30% each). Remaining 40% is divided in ratio 25:17. Partner 1 share = 0.3P + (25/42)*0.4P. Partner 2 share = 0.3P + (17/42)*0.4P. Difference = (8/42)*0.4P = 300. (8/42)*0.4P = 300 => (3.2/42)P = 300 => P = 300 * 42 / 3.2 = 3937.5.

AI explanation

The ratio of their capitals is 12500 to 8500, which simplifies to 25 to 17. The difference in their shares from the remaining 40% of the profit corresponds to 8 units (25 minus 17) of this ratio, and this difference equals Rs. 300. This makes 1 unit of the remaining profit equal to Rs. 37.50, so the total remaining 40% profit is 42 units multiplied by 37.50, which is Rs. 1575. The whole profit is 1575 divided by 0.40, resulting in Rs. 3937.50.

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