Multiple choice

Mr. Lotus starts a flower retail business by investing Rs. 40,000. Seeing his growth, after 4 months, Miss Tulip also joins the business with an investment of Rs. 50,000. At the end of the two years, they earn a profit of Rs. 98,000. What will be Miss Tulip's share in this profit?

  1. Rs. 48,000

  2. Rs. 40,000

  3. Rs. 50,000

  4. Rs. 60,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Lotus investment = 40000 * 24 months = 960000. Tulip investment = 50000 * 20 months = 1000000. Ratio = 96:100 = 24:25. Tulip share = 98000 * (25 / 49) = 2000 * 25 = 50000.

AI explanation

Because Miss Tulip joined after 4 months, her investment of 50,000 was in the business for 20 months, while Mr. Lotus's 40,000 was invested for 24 months. Their profit sharing ratio is (40000 * 24) : (50000 * 20), which simplifies to 960000 : 1000000 or 24 : 25. Miss Tulip's share of the 98,000 profit is (25 / 49) * 98000 = 50,000.

Keep practicing — related questions