A and B invest Rs 10,000 and Rs 20,000 in a business. A gets a royalty of 10%,…
2024
A and B invest Rs 10,000 and Rs 20,000 in a business. A gets a royalty of 10%, and the rest of the profit is shared according to their investment. Find the profit earned by A if the net annual profit is Rs 2380.
- A.
952
- B.
960
- C.
850
- D.
365
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Correct answer: A
Solution: Find A's profit when total profit is Rs 2380.
Calculate the royalty for A: 10% of 2380 = 238.
Remaining profit after royalty: 2380 − 238 = 2142.
Divide the remaining profit according to investments 10000:20000 = 1:2. A's share of the remaining = 1/(1+2) = 1/3 of 2142 = 714.
Total profit for A = royalty 238 + share 714 = 952.
Shortcut: A's total = 0.10×P + (1/3)×(0.90×P). For P = 2380 this gives 0.10×2380 + (1/3)×(0.90×2380) = 238 + 714 = 952.