A and B invest in a business in the ratio 3:1. If 5% of the total profit goes to charity and A’s share is Rs. 855, what is the total profit?
Show answer & explanation
Correct answer: B
Explanation
Given:
A : B's investment = 3 : 1
5% of the total profit went to charity
A's share = ₹855
By formula:
Profit remaining after donation = 95% of the total profit
Profit distribution = in the ratio of investment
Let total profit = x
Profit remaining after donation = 95x/100
A's share = (3/4) × (95x/100)
= 285x/400
285x/400 = 855
x = (855 × 400) / 285
x = 1200