Multiple choice

A, B and C are 3 partners in a business. Their investments are respectively Rs 2000, Rs 4,000 and Rs 3,000. A gets 30% of total profit for managing the business. The remaining profit is divided among them in the ratio of their investments. At the end of the year, the profit of A is Rs 1100 less than the sum of the profit of B and C. What amount of income will C get?

  1. Rs 2100.75

  2. Rs 2887.5

  3. Rs 2705.75

  4. Rs 2546.25

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

Let total profit be P. A gets 0.3P. Remaining 0.7P is split in ratio 2:4:3 (total 9 parts). A's share = 0.3P + (2/9)*0.7P = 0.3P + 0.1555P = 0.4555P. B's share = (4/9)*0.7P = 0.3111P. C's share = (3/9)*0.7P = 0.2333P. Given (B+C) - A = 1100 => (0.3111P + 0.2333P) - (0.3P + 0.1555P) = 1100 => 0.0888P = 1100 => P = 12375. C's share = 0.2333 * 12375 = 2887.5.

AI explanation

After A takes 30 percent of the total profit for managing, the remaining 70 percent is divided in the investment ratio of 2000 to 4000 to 3000, which is 2 to 4 to 3. Since A's remaining share is 2/9 of the distributed pool and B and C together hold 7/9, A's total profit being Rs. 1100 less than B and C's combined profit implies 7/9 minus 2/9 equals 1100. Solving this gives C's share as 3/9 of the pool plus the difference, which amounts to Rs. 2887.5.

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