Question

Two partners invest Rs. $12,500$ and Rs. $8,500$ respectively in their business and arrange that $60$% of the profit should be divided equally between them and the remaining profit treated as interest on the capital. If one partners share is Rs. $300$ more than that of the other, find the whole amount of the profit.

• A. Rs. $4,000$
• B. Rs. $5,000$
• C. Rs. $3,937.50$
• D. Rs. $2,625$

Answer 1

Answer: (C)

Rs. $3,937.50$

Ratio of investment of two partners = $\frac{12500}{8500}=\frac{25}{17}$
As the time period of investment is same the ratio of profit is same as ratio of investment.
Hence, $P_1:P_2$ = $25:17$
Let $P_1$ be $25x$ and $P_2$ be $17x$.
$25x-17x=300$
X = $\frac{300}{8}$ = $37.5$
Total profit $\times 0.4$ =$25x+17x$
Total profit = $\frac{42\times 37.5}{0.4}$ = $3937.50$