A and B jointly start a business. The investment of A is equal to three times the investment of B. Find the share of A in the annual profit of ₹55204.
Correct Answer :
₹41,403
Solution :
The correct option is ₹41,403.
To find the share of A in the annual profit, we need to determine the ratio of the investments made by A and B.
Let the investment of B be represented by:
According to the problem, the investment of A is equal to three times the investment of B. Therefore, the investment of A is:
The ratio of their investments is:
Since both partners invested their capital for the same duration (one year), the annual profit is shared in the same ratio as their investments. Therefore, the profit-sharing ratio between A and B is also:
The total number of parts in the profit-sharing ratio is:
A's share corresponds to 3 parts out of the total 4 parts. Given that the total annual profit is ₹55,204, we calculate A's share as follows:
First, we find the value of one part by dividing the total profit by 4:
Next, we multiply this value by 3 to find A's share (which represents 3 parts):
Thus, the share of A in the annual profit is ₹41,403.
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