A, B and C Started a Business by Investing Rs. 120000, Rs. 135000 and Rs. 150000 Respectively. Find the Share of Each, out of an Annual Profit of Rs. 56700?

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• Explanation

• Solution

Explanation

A, B and C started a business by investing Rs. 120000, Rs. 135000 and Rs. 150000 respectively. The share of each depends upon the investment and annual profit which is given here i.e. 56700.

As, the ratio of profit = ratio of investment

Ratio of investment = A : B : C = 120000 : 135000 : 150000

This ratio will be reduced to its lowest form

Now;

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

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

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

To Find

A, B and C’s share in profit = ?

Solution

Total annual profit = 56700

As, the profit ratio is equal to investment ratio, so;

A : B : C = 120000 : 135000 : 150000

A : B : C = 8 : 9 : 10   (and A + B + C = 8 + 9 + 10 = 27)

A’s share in profit = (8 x 56700)/27 = 16800

B’s share in profit = (9 x 56,700)/27 = 18900

C’s share in profit = (10 x 56,700)/27 = 21000

So, profit of A, B and C will be Rs. 16800, Rs. 18900 and Rs. 21000 respectively; which is our required answer.

Conclusion

A, B and C started a business by investing Rs. 120000, Rs. 135000 and Rs. 150000 respectively. Out of an annual profit of Rs. 56700, the share of A, B and C will be Rs. 16800, Rs. 18900 and Rs. 21000 respectively.