A and B started a business with investments of Rs 4000 and Rs 3000 respectively. After 6 months, B withdrew from the business. At the end of the year, the total profit was Rs 660. Find the share of profit (in Rs) received by A.
Correct Answer :
480
Solution :
To find the share of profit received by A, we need to determine the ratio of the investments of A and B over their respective periods of investment.
First, let's look at the investments and the duration for which each partner invested their money:
Investment of A = Rs. 4000 for 12 months (since A stayed in the business for the entire year).
Investment of B = Rs. 3000 for 6 months (since B withdrew after 6 months).
The ratio of their profit shares is equivalent to the ratio of the product of their investment amounts and investment durations:
Profit Share Ratio of A : B = (Investment of A × Time period of A) : (Investment of B × Time period of B)
Substituting the values:
Ratio = (4000 × 12) : (3000 × 6)
Ratio = 48000 : 18000
Simplifying the ratio by dividing both parts by 6000:
Ratio = 8 : 3
The total ratio parts = parts.
The total profit at the end of the year is Rs. 660.
Now, we can calculate A's share of the profit:
A's share = of the total profit
A's share =
A's share =
A's share = Rs. 480
Therefore, the share of profit received by A is Rs. 480.
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