Question Details

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.

Options

A

₹41,403

B

₹40,403

C

₹43,403

D

₹42,403

Show Answer

Correct Answer :

Option A

₹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:
x
According to the problem, the investment of A is equal to three times the investment of B. Therefore, the investment of A is:
3 x

The ratio of their investments is:
Investment of A : Investment of B = 3 x : x = 3 : 1

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:
3 : 1

The total number of parts in the profit-sharing ratio is:
3 + 1 = 4 parts

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:
Share of A = 3 4 × 55204

First, we find the value of one part by dividing the total profit by 4:
55204 4 = 13801

Next, we multiply this value by 3 to find A's share (which represents 3 parts):
3 × 13801 = 41403

Thus, the share of A in the annual profit is ₹41,403.

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