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A and B Started a Business in Partnership Investing Rs. 20000 and Rs. 15000 Respectively. After Six months, C Joined Them with Rs. 20000. What will be B’s Share in the Total Profit of Rs. 25000 Earned at the End of 2 Years from the Starting of the Business?

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Explanation

  • A and B started a business in partnership investing Rs. 20000 and Rs. 15000 respectively.
  • C joins them after six months with an investment of 20000.

First we’ll calculate A, B and C’s investment for 24 months (1 year = 24 months), 24 months and 18 months respectively (20000 x 24 = 480000, 15000 x 24 = 360000 and 20000 x 18 = 360000).

As the ratio of investment always equals to the ratio of profit so ratio of A : B : C will be reduced to its lowest form.

Now, share of B at the end of 24 months will be deduced by placing all the known values in the formula mentioned here under as:

B’s share in profit = (B’s ratio of investment x total profit)/total ratio

To Find

B’s share in profit = ?

Solution

Total investment of A for 24 months = 20000 x 24 = 480000

Total investment of B for 24 months = 15000 x 24 = 360000

Total investment of C for 18 months = 20000 x 18 = 360000

A : B : C = 480000 : 360000 : 360000

A : B : C = 4 :  3 : 3    (and 4 + 3 + 3 = 10)

B’s share in profit = (3 x 25000)/10

B’s share in profit = Rs. 7500 answer

Conclusion

A and B started a business in partnership investing Rs. 20000 and Rs. 15000 respectively. After six months, C joined them with Rs. 20000. The B’s share in the total profit of Rs. 25000 earned at the end of 2 years from the starting of the business will be Rs. 7500.

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