Arthur, Bianca, and Cyrus enter into a joint business venture. Arthur invests $60,000, Bianca invests $40,000, and Cyrus invests $30,000. After 3 months, Bianca increases her investment by 25%, while Cyrus reduces his investment by 20%. If the total profit earned at the end of 1 year is $133,000, what is Cyrus’s share of the profit?
Correct Answer :
$25,500
Rs.
Solution :
The correct option is $25,500.
To find Cyrus’s share of the total profit, we calculate the effective investment (investment multiplied by duration in months) for each partner over the 1-year (12 months) period.
Step 1: Calculate Arthur's total investment-months
Arthur invests $60,000 for the entire duration of 12 months without making any changes.
Step 2: Calculate Bianca's total investment-months
For the first 3 months, Bianca invests $40,000.
After 3 months, she increases her investment by 25%:
Her new investment for the remaining 9 months is:
Total investment-months for Bianca:
Step 3: Calculate Cyrus's total investment-months
For the first 3 months, Cyrus invests $30,000.
After 3 months, he reduces his investment by 20%:
His new investment for the remaining 9 months is:
Total investment-months for Cyrus:
Step 4: Determine the ratio of profit shares
The ratio of profit share among Arthur, Bianca, and Cyrus is:
Simplifying the ratio by dividing each term by 6,000:
Sum of the ratio terms:
Step 5: Calculate Cyrus's share of the profit
Given total profit = $133,000:
Dividing 133,000 by 266 gives 500:
Thus, Cyrus’s share of the profit is $25,500.
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