Multiple choice

Ramesh started a business investing a sum of Rs. 40,000. Six months later, Kevin joined by investing Rs. 20,000. If they make profit of Rs. 10,000 at the end of the year, how much is the share of Kevin?

  1. Rs. 2,000

  2. Rs. 4,000

  3. Rs. 3,000

  4. Rs. 2,500
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A Correct answer
Explanation

Ramesh invested 40000 for 12 months, Kevin invested 20000 for 6 months. Ratio = (40000*12) : (20000*6) = 480000 : 120000 = 4:1. Total parts = 5. Kevin's share = (1/5) * 10000 = 2000.

AI explanation

Using the partnership formula, the profit ratio equals the product of investment and time, so the ratio for Ramesh and Kevin is 40000 * 12 to 20000 * 6. This simplifies to 480000 to 120000, which is a 4 : 1 ratio. Since the total profit of Rs 10,000 is divided into 5 parts, each part is Rs 2,000, and Kevin's 1 part equals Rs 2,000.

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