Multiple choice

Ali and Bali invest in a business in the ratio 3 : 2. If 5% of the total profit goes to re-investment to business and Ali's share is Rs. 85,500, then the total profit is

  1. Rs. 1,20,000

  2. Rs. 1,50,000

  3. Rs. 1,60,000

  4. Rs. 1,75,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ali's share is 3/5 of the profit after 5% reinvestment. Let total profit be P. Profit to be shared = 0.95P. Ali's share = (3/5) * 0.95P = 85500. 0.57P = 85500, so P = 85500 / 0.57 = 150000.

AI explanation

Since 5% of the profit goes to re-investment, 95% of the total profit is distributed in the ratio of 3 : 2. Ali's share represents 3/5 of this distributed amount, so (3/5) * 0.95 * Total Profit = 85,500. Solving this gives 0.57 * Total Profit = 85,500, which means the total profit is 85,500 / 0.57 = 1,50,000.

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