Question

Mary and mike enter into a partnership by investing Rs. $700$ and Rs. $300$ respectively. At the end of one year, they divided their profits such that a third of the profit is divided equally for the efforts they have put into the business and the remaining amount of profit is divided in the ratio of the investments they made in the business. If Mary received Rs. $800$ more than Mike did, what was the profit made by their business in that year?

• A. $1000$
• B. $2000$
• C. $3000$
• D. $4000$

Answer 1

The correct option is C $3000$

Let the profit made during the year be Rs. $3x$
Therefore, Rs. $x$ would have been shared equally and the remaining Rs.$2x$ would have been shared in the ratio $7:3$.
i.e., $70\%$ of $2x$ would go to Mary and $30\%$ of $2x$ would go to Mike.
Hence, Mary would get $\left(\begin{array}{c}70-30\end{array}\right)\%$ of $2x$ more than Mike.
$\Rightarrow 40\%$ of $2x=Rs.800$
i.e., $\frac{40}{100}\times 2x=800$
$\Rightarrow 2x=2000$.
Hence, the profit made by the company during the year Rs.$3x=$ Rs. $3000$.