Multiple choice

R, Q and P start a business together with initial investment of Rs. 20000, Rs. 30000 and Rs. 25000 respectively. After 8 months, R and Q take out Rs. 10000 each from the investment. Total profit earned at the end of the year is Rs. 16400. Find out P's share of profit.

  1. Rs. 5500

  2. Rs. 6500

  3. Rs. 4000

  4. Rs. 6000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Investment-months: R: (20000*8 + 10000*4) = 200,000. Q: (30000*8 + 20000*4) = 320,000. P: (25000*12) = 300,000. Ratio R:Q:P = 20:32:30 = 10:16:15. P's share = 16400 * (15 / 41) = 6000.

AI explanation

Using the basic partnership rule that profit is shared in the ratio of the product of investment and time, the effective capital ratio for R, Q and P is (20000 * 8 + 10000 * 4) : (30000 * 8 + 20000 * 4) : (25000 * 12), which simplifies to 200000 : 320000 : 300000 or 10 : 16 : 15. The total profit of Rs. 16400 corresponds to 41 parts in this ratio, making 1 part equal to 16400 / 41 = 400. P's share is 15 parts, so P receives 15 * 400 = Rs. 6000.

Keep practicing — related questions