Multiple choice

X, Y and Z invested in a partnership firm Rs. 6000, Rs. 16,000 and Rs. 10,000, respectively. After the end of the first quarter, they invested additional amount in the ratio 3 : 8 : 5. Then, after the end of the second quarter, X, Y and Z invested additional amount in the ratio 4 : 3 : 4. Again, after the end of the third quarter, they invested additional amount in the ratio 7 : 6 : 7. They invested the whole amount for one year and the profit earned in the business is proportional to the investment and the period of investment. If they had invested additional amount at the end of each quarter in the same ratio as they had invested after the end of the first quarter and the total profit at the end of the year was Rs. 2,60,000, then find the profit of Y at the end of one year.

  1. Rs. 1,30,000

  2. Rs. 1,25,000

  3. Rs. 1,20,000

  4. Rs. 1,17,500

  5. None of these
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A Correct answer
Explanation

Since the initial investments and the additional investments at the end of each quarter are in the same ratio of 3 : 8 : 5, the total weighted investments of X, Y, and Z will also be in the ratio of 3 : 8 : 5. Thus, Y's share of the total profit is 8 / (3 + 8 + 5) = 1/2 of Rs. 2,60,000, which is Rs. 1,30,000.

AI explanation

If they had invested additional amounts at the end of each quarter in the same ratio as the first quarter, the ratio would be 3:8:5. The initial investment ratio is 6000:16000:10000, which is 3:8:5. Thus, the ratio of investment remains constant at 3:8:5 throughout the year. Y's share of the profit is his ratio share multiplied by the total profit. Y's share is 8 / (3 + 8 + 5) * 260000 = 8/16 * 260000 = 130000. Y's profit is Rs. 1,30,000.

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