A and B start a business with capitals in the ratio 4:3. After 4 months, A withdraws ₹8,000 and B doubles his investment. The initial investment of A is ₹40,000, and the total profit after 1 year is ₹72,000. Find the profit ratio of A and B.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 52 : 75.
Initial capitals:
A = 40000 and B = (3/4) × 40000 = 30000
A = (40000 × 4) + (32000 × 8) = 160000 + 256000 = 416000
B = (30000 × 4) + (60000 × 8) = 120000 + 480000 = 600000
Ratio of profits = 416000 : 600000 = 52 : 75