M and N invest ₹80,000 and ₹1,20,000. After a year, the total profit, including 10% interest, is ₹33,000. What is N’s share?
Show answer & explanation
Correct answer: D
Explanation
M's investment = ₹80,000
N's investment = ₹1,20,000
Investment ratio = 80,000 : 1,20,000 = 2 : 3
Total amount = ₹2,00,000
10% interest = 10% × 2,00,000 = ₹20,000
Total profit (including interest) = ₹33,000
Actual business profit = 33,000 − 20,000 = ₹13,000
N's share in business profit -
= (3/5) × 13,000 = ₹7,800
N's total share -
= 12,000 + 7,800 = ₹19,800