Multiple choice

In a partnership business, Arvind and Manish invested Rs. 1,50,000 and Rs. 1,80,000, respectively. After 4 months, Arvind invested Rs. 50,000 more, while Manish withdrew Rs. 30,000. By how much amount would the share of Arvind be more than that of Manish in the annual profit of Rs. 1,03,000?

  1. Rs. 7000

  2. Rs. 7500

  3. Rs. 8600

  4. Rs. 9000

  5. Rs. 9500
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A Correct answer
Explanation

Calculate the equivalent investment for one month for each partner. Arvind: (150000 * 4) + (200000 * 8) = 600000 + 1600000 = 2200000. Manish: (180000 * 4) + (150000 * 8) = 720000 + 1200000 = 1920000. The ratio is 220:192 or 55:48. Arvind's share is (55/103) * 103000 = 55000, Manish's is 48000. The difference is 7000.

AI explanation

Find the effective capital for each person by calculating the product of their investment amounts and the respective time periods in months. Arvind's effective capital is (150000 times 4) plus (200000 times 8) to equal 2200000. Manish's effective capital is (180000 times 4) plus (150000 times 8) to equal 1920000. The ratio of their profits is 2200000 to 1920000, which simplifies to 55 to 48. The difference in their ratio parts is 55 minus 48 to equal 7 parts out of a total of 103 parts. The difference in their actual profit shares is therefore (7 divided by 103) times 103000, which equals Rs. 7000.

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