Question Details

Two entrepreneurs, P and Q, launched a venture with a total capital of Rs. 10,000. P's initial capital was Rs. 2,000 less than Q's. Q maintained the investment for a full 12 months, whereas P kept the capital invested for x months less than Q. If the overall profit generated at the year's end was Rs. 10,000 and P's portion of the profit was Rs. 2,000, what is the value of x?

Options

A

5.5 months

B

8.5 months

C

7.5 months

D

6.5 months

Show Answer

Correct Answer :

Option C

7.5 months

Solution :

The correct answer is 7.5 months.

Step 1: Determine the investment capital of each entrepreneur
Let the initial capital invested by Q be CQ and by P be CP.
We are given that the total combined capital is Rs. 10,000 and P's capital was Rs. 2,000 less than Q's capital.

CP+CQ=10000

CP=CQ-2000

Substitute the expression for CP into the total capital equation:

(CQ-2000)+CQ=10000

2CQ-2000=10000

2CQ=12000

CQ=6000

Therefore, Q's initial capital is Rs. 6,000, and P's initial capital is:

CP=6000-2000=4000

Step 2: Determine the duration of investment for P and Q
Q kept the investment for a full 12 months.
P kept the investment for x months less than Q, so P's investment period is (12-x) months.

Step 3: Express equivalent investments
In a partnership, profit is shared in proportion to the product of capital and time period (Capital×Time).

Equivalent investment of P=4000×(12-x)

Equivalent investment of Q=6000×12=72000

Step 4: Calculate profit sharing and solve for x
Total profit at year-end = Rs. 10,000
P's profit portion = Rs. 2,000
So, Q's profit portion = Rs. 10,000 - Rs. 2,000 = Rs. 8,000.

The ratio of P's profit to Q's profit must equal the ratio of their equivalent investments:

P's ProfitQ's Profit=4000×(12-x)72000

Substitute the actual profit values into the equation:

20008000=4000×(12-x)72000

Simplify both sides:

14=12-x18

Multiply both sides by 18 to isolate 12-x:

12-x=184

12-x=4.5

x=12-4.5=7.5

Hence, the value of x is 7.5 months.

Unlock Our Free Library

Access expert-curated educational resources and study materials—completely free.

Ask AI Tutor
5 left
Q1 View Question & Options
AI Tutor is solving this question...
Reading question context & options...