Question

If each of the companies, A and B, invested Rs 25 lakhs in 2010, what was the average profit earned by the companies?

• A. Rs 18 lakhs
• B. Rs 22.5 lakhs
• C. Rs 17.5 lakhs
• D. Rs 20 lakhs
• E. None of these

Answer 1

The correct option is D Rs 20 lakhs

For company A,
$90=\frac{P}{25}\times 100$
$P=\frac{90\times 25}{100}$=Rs 22.5 lakh
For company B,
$70=\frac{Q}{25}\times 100$
$\Rightarrow Q=\frac{70\times 25}{100}$ = 17.5 lakh
$\therefore$ Required average $=\frac{22.5+17.5}{2}$
=Rs 20 lakh