Question

Satish and Pravin invested ₹20,000 per month and ₹10,000 per month respectively in a business at the beginning of the year. After 6 months, Neeraj joined them with a capital of ₹10,000 per month. If they make a profit of ₹28,000 at the end of the year, what will be the profit Neeraj will earn?

• A. ₹4000
• B. ₹7000
• C. ₹8000
• D. ₹5000

Answer 1

The correct option is A ₹4000

Investment made by Satish for a period of 12 months is $20,000\times 12=2,40,000$
Investment made by Pravin for a period of 12 months is $10,000\times 12=1,20,000$
Investment made by Neeraj for a period of 12 months is $10,000\times 6=60,000$

Investment made by Satish : Investment made by Pravin : Investment made by Neeraj = 2,40,000 : 1,20,000 : 60,000 = 4 : 2 : 1

Hence, Neeraj's profit = $28,000\times \frac{1}{4+2+1}=28,000\times \frac{1}{7}=₹4000$