Question Details

Three partners, A, B, and C, launched a joint venture by investing capital in the ratio of 3 : 5 : 4, respectively. After 6 months, A added Rs 600 to his investment, whereas B withdrew Rs 600 from his investment. If A's share of the annual net profit is Rs 12,000 out of a total profit of Rs 40,000, calculate the initial investment (in Rs) made by C.

Options

A

1500

B

2400

C

1800

D

2500

E

2000

Show Answer

Correct Answer :

Option E

2000

Solution :

The correct answer is 2000.

Step-by-step explanation:

1. Express initial investments using a variable:

Let the initial investments of partners A, B, and C be in the ratio 3 : 5 : 4.
We can express their initial investments as:
Initial investment of A =
3x
Initial investment of B =
5x
Initial investment of C =
4x

2. Calculate the total investment-months for each partner over 1 year (12 months):

For Partner A:
For the first 6 months, A invested
3x
. After 6 months, A added Rs 600, making the investment
3x+600
for the remaining 6 months.
Total investment for A =
(3x×6)+(3x+600)×6
=
18x+18x+3600=36x+3600

For Partner B:
For the first 6 months, B invested
5x
. After 6 months, B withdrew Rs 600, making the investment
5x-600
for the remaining 6 months.
Total investment for B =
(5x×6)+(5x-600)×6
=
30x+30x-3600=60x-3600

For Partner C:
C kept
4x
invested for the entire 12 months without any change.
Total investment for C =
4x×12=48x

3. Calculate total combined investment of all three partners:
Total investment =
(36x+3600)+(60x-3600)+48x
=
144x

4. Determine value of x using A's share of profit:
A's share of profit is Rs 12,000 out of total profit of Rs 40,000.
The ratio of A's investment to total investment is equal to the ratio of A's profit to total profit:


36x+3600144x=1200040000

Simplifying the profit fraction:

1200040000=310

Equating the two fractions:

36x+3600144x=310

Cross-multiplying to solve for
x
:


10×(36x+3600)=3×144x

360x+36000=432x

432x-360x=36000

72x=36000

x=3600072=500

5. Calculate C's initial investment:
Initial investment of C =
4x=4×500=2000

Hence, the initial investment made by C is Rs 2000.

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