What are you looking for? Let’s dig in quickly
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.
