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Radha and Vatsal invested ₹36,000 and ₹42,000, respectively, in a business. Radha, being an active partner, got ₹637.50 extra every month for running
Question

Radha and Vatsal invested ₹36,000 and ₹42,000, respectively, in a business. Radha, being an active partner, got ₹637.50 extra every month for running the business. In 3 years, if Radha received a total of ₹31,500, then what was the profit earned by Vatsal during this period?

A.

₹9,975

B.

₹36,750

C.

₹8,550

D.

₹10,795

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:
Extra Amount=637.50×12 months×3 years=22,950\text{Extra Amount} = ₹637.50 \times 12 \text{ months} \times 3 \text{ years} = ₹22,950
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 = 66+7×P=613P\frac{6}{6 + 7} \times P = \frac{6}{13}P​​
We already found Radha's profit share to be ₹8,550:
613P=8,550\frac{6}{13}P = ₹8,550

P=8,550×136=18,525P = ₹8,550 \times \frac{13}{6} = ₹18,525​​
Using the investment ratio:
Vatsal's Share = 713×18,525=9,975\frac{7}{13} \times ₹18,525 = ₹9,975​​
Vatsal earned a profit of ₹9,975 over the 3-year period.

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