Question

If the investments of company A in 2007 and 2008 were equal, what is the difference between profit earned in two years if the income in 2008 was Rs. 24 lakhs?

• A. Rs 2.25 lakhs
• B. Rs 3.6 lakhs
• C. Rs 1.8 lakhs
• D. Rs 2.6 lakhs
• E. None of these

Answer 1

The correct option is E None of these

If the profit of company A in 2007 and 2008 is Rs P and Rs Q lakh respectively and each investment is Rs 1 lakh, then,
$45=\frac{P}{I}\times 100$
$\Rightarrow P=\frac{45I}{100}$ ...(i)
$60=\frac{Q}{I}\times 100$
$\Rightarrow Q=\frac{60I}{100}$ ...(ii)
$\therefore Q-P=\frac{60I}{100}$ ...(iii)
Also, profit earned in 2008 = 28 - I
$\therefore \frac{60I}{100}=28-I$
$\Rightarrow \frac{160I}{100}=28$
$\Rightarrow I=\frac{2800}{160}$ = Rs.17.5 Lakh
$\Rightarrow Q-P=\frac{15\times 17.5}{100}$ = Rs 2.625 lakh