Multiple choice

A and B started a business with investments of Rs. 4,500 and Rs. 2,700, respectively. Find A's share of the total annual profit, which is Rs. 256.

  1. Rs. 170

  2. Rs. 120

  3. Rs. 160

  4. Rs. 140

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

Profit is shared in the ratio of investments: 4500 : 2700 = 5 : 3. A's share = (5 / (5+3)) * 256 = (5/8) * 256 = 5 * 32 = 160.

AI explanation

Because both partners invested for the entire year, their profit ratio is equal to their investment ratio of 4500 : 2700, which simplifies to 5 : 3. A's share of the profit is calculated as 5/(5 + 3) * 256. This results in 5/8 * 256, giving A's share as Rs. 160.