D and E start a business with equal investments. After 4 months, D adds Rs. 10,000 more. At the end of 1 year, if the total profit is Rs. 33,000, and E's share is Rs. 15,000, what was their initial investment?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 33,333.33.
Profit ratio = Capital × Time
D’s capital-months = P × 4 + (P + 10000) × 8 = 12P + 80000
E’s capital-months = P × 12 = 12P
Ratio = (12P + 80000) : 12P = (3P + 20000) : 3P
E’s share = 15000
D’s share = 33000 - 15000 = 18000
Ratio = 18000 : 15000 = 6 : 5
(3P + 20000)/3P = 6/5
⇒ 15P + 100000 = 18P
⇒ 100000 = 3P
⇒ P ≈ 33333.33