A and B entered into a partnership and invested their respective amounts in the ratio of 2: 1. C and D entered into another partnership with initial investment ratio of 2: 1. Total investment of A and B was 25% less than that of C and D. If total profit of all 4 person at the end of year is Rs.10500, then find profit of A.
Correct Answer :
Rs.3000
Solution :
The correct option is Rs.3000.
Let's find the profit share of A step-by-step:
Step 1: Set up the total investments of the two partnerships.
Let the total investment of C and D be 100x.
Since the total investment of A and B is 25% less than that of C and D, we have:
Step 2: Calculate the individual investments of A, B, C, and D.
The investment ratio of A and B is 2 : 1. Therefore:
The investment ratio of C and D is also 2 : 1. Therefore:
Step 3: Determine the profit-sharing ratio among all four partners.
Since all four partners invested for the same duration (1 year), their profit-sharing ratio is directly proportional to their individual investments:
Multiplying the entire ratio by 3 and dividing by x to simplify:
Dividing by 25 to simplify further:
Step 4: Calculate the profit of A.
Sum of the ratio parts:
Given that the total profit is Rs. 10500:
Since A's share is 6 units:
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