A and B jointly start a business. The investment of A is equal to seven times the investment of B. Find the share of A (in ₹) in the annual profit of ₹2,75,000.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e.2,40,625
Investment ratio of invest of A to B = 7 : 1
The ratio of share in the profit of A to B = 7 : 1
Let the common ratio be x.
Total profit = 275000
ATQ -
7x + x = 275000
8x = 275000
x = 34375
Share of A in the annual profit = 7x = 7(34375) = 240625