Ramesh started a business by investing a sum of Rs 40,000. Six months later, Kevin joined by investing Rs 20,000. If they make a profit of Rs 10,000 at the end of the year, how much is the share of Kevin?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs 2,000
We know that the profit share = Investment × time period.
Ramesh's Profit share : Kevin's profit share = 40000 × 12 : 20000 × 6 = 4 : 1
Share of Kevin = 1/5 × 10000 = 2000.