Multiple choice

The ratio of investment of A, B, C and D in a business is 2:3:5:7. A and B started the business initially, while C and D joined the business after 4 months. After 1 year the profit of C is equal to the average of the profit of A and D. i.e. 12000 Rs. Then find the Share of B.

  1. 10000 Rs

  2. 10800 Rs

  3. 12000 Rs

  4. 11000 Rs

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let investments be 2x, 3x, 5x, 7x. Profits are proportional to (investment * time). A and B invest for 12 months, C and D for 8 months. Profit A = 24x, B = 36x, C = 40x, D = 56x. C's profit (40x) = (24x + 56x) / 2 = 40x. This is an identity, so we need the value 12000. 40x = 12000 implies x = 300. B's share = 36 * 300 = 10800.

AI explanation

Let the investment ratio be 2x, 3x, 5x, and 7x for A, B, C, and D respectively, where A and B invest for 12 months and C and D invest for 8 months. The profit ratio is found by multiplying investment by time: A's is 24x, B's is 36x, C's is 40x, and D's is 56x. The question states C's profit equals the average of A's and D's profit, so (24x + 56x) divided by 2 equals 40x, which validates the ratio setup. Since C's profit of 40x is given as Rs. 12000, one unit of x equals 300, making B's share 36x equal to 36 multiplied by 300, which is Rs. 10800.