Multiple choice

Raman and Nakul invested in a business. Raman invested Rs 3000 and withdraw Rs 1500 at the end of the 8th month. Nakul invested Rs 1000 initially and Rs 3500 more at the end of 4th month but withdraw Rs 1500 at the end of the 7th month. At the year's end, they earned Rs 1800. What should be Raman's share?

  1. 800

  2. 920

  3. 864

  4. 850

  5. 795

Reveal answer Fill a bubble to check yourself
C Correct answer
AI explanation

The profit share is determined by the equivalent capital, calculated as the sum of each investment multiplied by its duration in months. Raman's equivalent capital is (3000 x 8) + (1500 x 4) = 30000, while Nakul's equivalent capital is (1000 x 4) + (4500 x 3) + (3000 x 5) = 32500. The ratio of their profits is 30000:32500, or 12:13, meaning Raman takes 12 out of the 25 total parts. Since the total profit is Rs. 1800, Raman's share is 1800 multiplied by (12/25), which equals Rs. 864.