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 :
- A.
500
- B.
1000
- C.
1500
- 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.