Riya invests 60,000 and Kabir invests 80,000. At the end of the year, they earn a profit of 70,000. How much profit does Kabir get?
Show answer & explanation
Correct answer: C
Explanation
Given:
Riya's investment = 60,000
Kabir's investment = 80,000
Total profit = 70,000
Formula:
Profit sharing = in the ratio of investment
Ratio = 60,000 : 80,000 = 3 : 4
Total ratio = 3 + 4 = 7
Kabir's share = (4/7) × 70,000 = 40,000