A and B invest in a business in the ratio 3 : 2. If 5% of the total profit…

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A and B invest in a business in the ratio 3 : 2. If 5% of the total profit goes to charity and A's share is Rs. 855, the total profit is :

  1. A.

    500

  2. B.

    1000

  3. C.

    1500

  4. D.

    2000

Attempted by 7 students.

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Correct answer: C

Solution: Compute A's share as a percentage of the total and then find the total profit.

  • After 5% goes to charity, 95% of the total profit remains.

  • A receives 3/(3+2) = 3/5 of the remaining profit, so A's share = 95% × 3/5 = 57% of the total profit.

  • Let the total profit be T. Then A's amount = 57% of T = 0.57T = 855.

  • Solve for T: T = 855 ÷ 0.57 = 1500.

  • Therefore the total profit is Rs. 1500.

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