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Sita, Gita and Rita invested ₹20,000, ₹50,000 and ₹40,000, respectively, in a business. The net profit for the year was ₹12,100, which was divided in
Question

Sita, Gita and Rita invested ₹20,000, ₹50,000 and ₹40,000, respectively, in a business. The net profit for the year was ₹12,100, which was divided in proportion to their investments. Find the share of profit earned by Rita.

A.

₹4,400

B.

₹4,200

C.

₹4,100

D.

₹4,300

Correct option is A

Given:

Sita's investment = ₹20,000

Gita's investment = ₹50,000

Rita's investment = ₹40,000

Net profit for the year = ₹12,100

Solution:

Total investment = 20,000 + 50,000 + 40,000 = 1,10,000

Rita’s share = (40,0001,10,000)×12,100\left(\frac{40,000}{1,10,000}\right) \times 12,100​​

Rita’s share =40,000×12,1001,10,000=4,84,00,0001,10,000=4,400 \frac{40,000 \times 12,100}{1,10,000} = \frac{4,84,00,000}{1,10,000} = 4,400

Thus, Rita's share of the profit is ₹4,400.

Alternate Method:

Sita : Gita : Rita = 2 : 5 : 4

The sum of the ratios is 2+5+4=11

Rita's share of profit = 411×\frac4{11}\times​12,100

Rita's share of profit = 4×1,100

Rita's share of profit = ₹4,400

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