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Out of the total profit of Rs. 15,500 in a business of A and B, A gets Rs. 5,500 as profit. If the investment of A is Rs. 67,500 less than the investm
Question

Out of the total profit of Rs. 15,500 in a business of A and B, A gets Rs. 5,500 as profit. If the investment of A is Rs. 67,500 less than the investment of B, then the investment of B (in Rs.) is:

A.

1,25,000

B.

1,50,000

C.

1,60,000

D.

1,55,000

Correct option is B

Given:

Total profit = Rs. 15,500

A’s profit = Rs. 5,500

B’s profit = 15,500 – 5,500 = 10,000

A’s investment is Rs. 67,500 less than B’s.

Find B’s investment.

Concept Used:

Profit is proportional to investment in partnership.

A’s Profit : B’s Profit = A’s Investment : B’s Investment

Solution:

Profit ratio = 5500 : 10000 = 11 : 20

Let investments be 11k and 20k.

Difference = 20k − 11k = 9k

Given 9k = 67,500

=> k = 7,500

B’s investment = 20k = 20 × 7,500 = Rs. 1,50,000

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