Multiple choice

Raju starts a business by investing 27,000. After four months, Amit joins him with an amount of 33,000. At the end of the year Amit gets 1,936 as his share of profit. Find the total profit made in the business at the end of the year.

  1. Rs 4,312

  2. Rs 4,618

  3. Rs 4,953

  4. Rs 4,120
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A Correct answer
Explanation

Raju's investment: 27000 * 12 months = 324000. Amit's investment: 33000 * 8 months = 264000. Ratio = 324 : 264 = 27 : 22. Amit's profit share = (22 / 49) * Total = 1936. Total = 1936 * 49 / 22 = 88 * 49 = 4312.

AI explanation

Calculate the profit sharing ratio by multiplying each partner's investment by the number of months the money was invested. Raju's effective capital is 27000 times 12 months to equal 324000. Amit's effective capital is 33000 times 8 months to equal 264000. The ratio of their profits is 324000 to 264000, which simplifies by dividing both numbers by 12000 to get a ratio of 27 to 22. Since Amit's 22 parts equal Rs. 1936, one part is 1936 divided by 22 to equal 88 rupees. The total profit is 49 parts (27 plus 22) times 88, which equals Rs. 4312.

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