Multiple choice

A, B and C invested in a new business Rs. 10,000, Rs. 20,000 and Rs. 30,000, respectively. After 1 year, A added Rs. 5000 to the initial investment. B and C withdrew Rs. 5000 and Rs. 10,000, respectively. After 2 years, the total profit is Rs. 9900. What is difference between A's and C's share in the profit?

  1. Rs. 1500

  2. Rs. 2250

  3. Rs. 4500

  4. Rs. 1000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A: (10000*12 + 15000*12) = 300000. B: (20000*12 + 15000*12) = 420000. C: (30000*12 + 20000*12) = 600000. Ratio A:B:C = 30:42:60 = 5:7:10. Total parts = 22. Profit = 9900. Value per part = 9900/22 = 450. Difference between A and C = (10-5) * 450 = 5 * 450 = 2250.

AI explanation

Use the fundamental partnership method of multiplying capital by the time period. For the first year, the ratio of investments is 10000 to 20000 to 30000, and for the second year, it becomes 15000 to 15000 to 20000. The effective capital ratio for profit sharing is calculated as 10000 x 1 + 15000 x 1 : 20000 x 1 + 15000 x 1 : 30000 x 1 + 20000 x 1, which simplifies to 25000 : 35000 : 50000, or 5 to 7 to 10. The difference between the ratio parts of A and C is 10 minus 5 equals 5, and the total parts equal 22, making the difference (5 divided by 22) of the total Rs. 9900 profit, which equals Rs. 2250.

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