Correct option is A
Given:
Radha's Investment (R): ₹36,000
Vatsal's Investment (V): ₹42,000
Radha's Extra Monthly Earnings (for managing the business): ₹637.50
Total Earnings for Radha (over 3 years): ₹31,500
Duration: 3 years
Solution:
First, compute the total extra amount Radha received over 3 years:
Profit Share (Radha) = ₹31,500 - ₹22,950 = ₹8,550
The investments of Radha and Vatsal are in the ratio:
Investment Ratio = 36,000 : 42,000 = 6 : 7
Let the total profit be P .
Radha's profit share is based on the investment ratio:
Radha's Share =
We already found Radha's profit share to be ₹8,550:
Using the investment ratio:
Vatsal's Share =
Vatsal earned a profit of ₹9,975 over the 3-year period.