Nazir invested 4000 rupees and Narayanan invested 6000 rupees to set up a partnership. In one year, they got 3000 rupees profit. If they split this in the ratio of their investment, how much would each get?

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Solution

Money invested by Nazir = Rs.4000

Money invested by Narayanan = Rs.6000

Ratio of Nazir’s investment to Narayanan’s investment =

= 2 : 3

Therefore, there are a total of 2 + 3 = 5 parts.

Nazir will get parts and Narayanan will get parts of the total profit.

Total profit earned in a year = Rs.3000

Thus, Nazir’s share of profit = × Rs.3000

= Rs.1200

Narayanan’s share of profit = × Rs.3000

= Rs.1800

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