Question

Two partners invested Rs 12500 and Rs 8500 in a business. They decided that 60% of the profit incurred from the business will be equally divided between them while remaining profit will be assumed as interest on their capitals. If one of the partners receives Rs 300 more profit than the other, what is the total profit in the business ?

• A. Rs 3937.50
• B. Rs 4940.50
• C. Rs 3936.50
• D. Rs 4156
• E. None of these

Answer 1

The correct option is A Rs 3937.50

Suppose, total profit in the business = Rs x
$\therefore 60\%$ of total profit = $60\%ofx=Rs\frac{3x}{5}$
$\therefore$ The two partners will receive profit of $Rs\frac{3x}{10}andRs\frac{3x}{10},$ respectively.
$\therefore$ Remaining profit $x-\frac{3x}{5}=Rs\frac{2x}{5}$
The remaining profit assumed as interest on the capital will be divided in the proprortion of their capitals.
Their capital ratio = 12500 : 8500 = 25 : 17
Sum of proportionals $=25+17=42$
$\therefore$ The first partner's profit $\frac{25}{42}\times \frac{2x}{5}=Rs\frac{5x}{21}$
The second partner's profit $=\frac{17}{42}\times \frac{2x}{5}=Rs\frac{17x}{105}$
Given $\frac{3x}{10}+\frac{5x}{21}=\frac{3x}{10}+\frac{17x}{105}+300$
$\therefore \frac{8x}{105}=300$
Or. $x=\frac{105\times 300}{8}=Rs3937.50$
$\therefore$ Total profit in the business = Rs 3937.50.