A and B invest ₹40,000 and ₹60,000 in a business. After one year, the profit is distributed, including simple interest at 10% per annum on the capital. The total profit (including interest) is ₹18,000. What is A's share?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹7,200.
A's interest = (10/100) × 40000 = 4000
B's interest = (10/100) × 60000 = 6000
Total interest = 4000 + 6000 = 10000
Remaining profit to be split = 18000 - 10000 = 8000
Profit-sharing ratio (without interest) = 40000 : 60000 = 2 : 3
A's share of business profit = (2/5) × 8000 = 3200
A's total share = 4000 + 3200 = 7200