A and B invest ₹20,000 and ₹30,000 in a business. B receives ₹1000 more than A from the annual profit. What is the total profit?
Show answer & explanation
Correct answer: B
Explanation
Given:
A's investment = ₹20,000
B's investment = ₹30,000
B earns ₹1,000 more profit than A.
Investment ratio = 20,000 : 30,000 = 2 : 3
Let the profit be:
A = 2x
B = 3x
As per the question:
3x − 2x = 1,000
x = 1,000
Total profit = 2x + 3x = 5x = ₹5,000