Question

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

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

Answer 1

The correct option is A

Rs. 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 = $28,000\times \frac{1}{4+2+1}=28,000\times \frac{1}{7}=Rs.4000$