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A and B Invest in a Business in the Ratio 3:2. If 5% of the Total Profit Goes to Charity and A’s Share is Rs. 855, the Total Profit is?

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Explanation

A and B invest in a business in the ratio 3:2.

5% of the total profit goes to charity.

A’s share is Rs. 855.

Let suppose the total profit is “y”. The profit that goes to the charity would be “y/20” and the net profit [y – y/20 = (20y – y)/20 = 19y/20] will be 19y/20.

A’s profit is given (Rs. 855), then B’s profit [19y/20 – 855) = (19y – 17100)/20] would be (19y – 17100)/20.

As, profit is divided among partners according to their investment ratio and investment ratio is 3:2.

So the final expression we have; 3/2 = 855 / (19y – 17100)/20

Through this equation; we can easily find out total profit.

To Find

Total profit = ?

Solution

Let suppose;

Total profit = y

Profit given to charity (5% of y) = y/20

Net profit (left over profit after giving 5% to charity) = y – y/20 = 19y/20

Profit of A (given) = 855

Profit of B = 19y/20 – 855 = (19y – 17100)/20

Initial investment ratio of A and B (given) = 3:2

Investment ratio = profit ratio

3/2 = 855 / (19y – 17100)/20

3/2 = (855 x 20)/(19y – 17100)

3/2 = 17100/(19y – 17100)

3 x (19y – 17100) = 2 x 17100

57y – 51300 = 34200

57y = 34200 + 51300

57y = 85500

y = 85500/57

y = Rs. 1500 answer

Conclusion

A and B invest in a business in the ratio 3:2. If 5% of the total profit goes to charity and A’s share is Rs. 855 then the total profit will be Rs. 1500.

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