A invests ₹18,000, while B invests ₹27,000 in a business. A receives an additional 25% of the total profit as a management fee. The total profit at the end of the year is ₹50,000. What is A's total share of the profit?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹27,500.
Management fee for A = (25/100) × 50000 = 12500
Profit left after management fee = 50000 - 12500 = 37500
Investment ratio = 18000 : 27000 = 2 : 3
A's share of remaining profit = (2/5) × 37500 = 15000
A's total share = 15000 + 12500 = 27500