Multiple choice

Passage

Directions: Read the given information carefully and answer the following question. Three partners - P, Q and R - start a business in partnership with initial investments of Rs. 20,000, Rs. 30,000 and Rs. 50,000, respectively. The next year, P invests Rs. 12,000 more in the business and Q withdraws Rs. 5000 from the business. In the third year, P and Q invest Rs. 20,000 each in the business and R withdraws Rs. 10,000 from the business. They all remain in the partnership for 5 years. The profits earned by them are proportional to their investments and the periods of investments.

If a total profit of Rs. 49,44,000 is made in the business, then what will be the share of R?

  1. Rs. 20 lakh

  2. Rs. 17.6 lakh

  3. Rs. 16.67 lakh

  4. Rs. 1.45 lakh

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

Calculate total investment-months for each: P = 20k*1 + 32k*1 + 52k*3 = 208k. Q = 30k*1 + 25k*1 + 45k*3 = 190k. R = 50k*2 + 40k*3 = 220k. Total = 618k. R's share = (220/618) * 49,44,000 = 17,60,000.

AI explanation

To find R's profit share, calculate his total investment over the 5 years: 50000 for one year, then 40000 for one year, then 30000 for the remaining 3 years, giving a total of 220000. The total investment equivalents are 112000 for P, 145000 for Q and 220000 for R, so R's share of the 4944000 profit is the fraction 220000 divided by 477000 of the total. This calculation results in R's share being 1760000, which is 17.6 lakh.

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