Question

The ratio of investments of two friends X and Y is 3:5 . If the total profit is Rs 8000 and X is planning to reinvest 80 % of his part of profit, how much would he reinvest?

• A.
  Rs 2000
• B.
  Rs 3000
• C.
  Rs 2400
• D.
  Rs 3200

Answer 1

The correct option is C

Rs 2400
We know,

Ratio of Profits = Ratio of investments

The ratio of profits X and Y would receive is therefore, 3:5

$\therefore$ Let X's share of profit be 3x and Y's share be 5x

We know,
Total profit = 8000
$\Rightarrow$ 3x + 5x = 8000
$\Rightarrow$ 8x = 8000
$\Rightarrow$ x = 1000

Therefore, X's share of profit = 3x = 3000
It is given that X reinvests 80%
$\Rightarrow$ X reinvests: $0.8\times 3000=Rs2400$

Hence, (c) is the required answer