Question 79

A starts a small business by investing a certain sum of money. B joins A after three months from the start of the business by investing 1.5 time A’s investment. Three months after B joined the business, C joins A and B by investing half of A’s investment. It was agreed that the working partner would receive 10% of the profit and the share according to the investment proportion from the rest of the profit. If total profit at the end of the year was Rs. 23750, how much will A, being the only working partner receive?

Solution

Let A's investment = $$Rs. x$$

=> B's investment = $$Rs. 1.5x$$

=> C's investment = $$Rs. 0.5x$$

Ratio of shares of A,B and C

= $$(x \times 12) : (1.5x \times 9) : (0.5x \times 6)$$

= $$24 : 27 : 6 = 8 : 9 : 2$$

Total profit = Rs. 23,750

Since, A is the working partner, he will receive 10 %

=> $$\frac{10}{100} \times 23750 = Rs. 2,375$$

Profit left = 23750 - 2375 = 21375

Thus, A's share = $$\frac{8}{8 + 9 + 2} \times 21375$$

= $$8 \times 1125 = 9000$$

$$\therefore$$ Total amount received by A = $$2,375 + 9,000 = Rs. 11,375$$

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