Multiple choice

Ajay starts a fruit business with an investment of Rs. 20,000. After 3 months, Atul joins him with an investment of Rs. 30,000. At the end of 1 year from the start of the business, they generate a profit of Rs. 34,000. How much should be Ajay's share (in Rs.) from the total profit?

  1. 18000

  2. 16000

  3. 20000

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ajay's investment = 20000 * 12 = 240000. Atul's investment = 30000 * 9 = 270000. Ratio = 24:27 = 8:9. Ajay's share = (8/17) * 34000 = 16000.

AI explanation

Since the time periods differ, the profit ratio equals the ratio of the products of investment and time, calculated as (20000 * 12) : (30000 * 9), which simplifies to 240000 : 270000 or 8 : 9. Ajay's share is 8 / (8 + 9) of the total profit of 34000, calculated as 34000 * 8 / 17. This gives Rs. 16000.

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