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Two friends A and B started a business by investing ₹1,50,000 and ₹2,50,000, respectively. They agreed to distribute their earnings in the same ratio
Question

Two friends A and B started a business by investing ₹1,50,000 and ₹2,50,000, respectively. They agreed to distribute their earnings in the same ratio of their investments. After a year, the profit earned was ₹6,00,000 . Each of them added ₹50,000 to their respective profits and invested in a different project. If this project gave a yield of ₹4,20,000, then A's share in the profit is:

A.

₹ 2,35,000

B.

₹ 1,65,000

C.

₹ 1,97,000

D.

₹ 1,84,000

Correct option is B

Given:
Investment of A and B = ₹1,50,000 and ₹2,50,000
Profit earned after one year = ₹6,00,000
New project gave an yield = ₹4,20,000
Concept and Formula Used:
Concept of ratio;
Total revenue = Investment × Time
If two person invest some amount for equal number of years, then the share of the profit is equal to the ratio of their investment.
Solution:
From the investment of A and B,
Ratio of investment of A and B = 3 : 5 ​​
profit of A after one year = 6,00,000×38\frac{ 6,00,000\times3}{8} = 75000 ×\times 3  = 225000
profit of A after one year = 6,00,000×58\frac{ 6,00,000\times5}{8} = 75000 ×\times 5 = 375000
investment of A for second year = 225000 + 50000 = 275000
investment of B for second year = 375000 + 50000 = 425000
Ratio of investment of A and B = 275000 : 425000
                                                   = 11 : 17
profit of A in second year  = 420000×1128\frac{420000\times11}{28}
                                     = ₹165000

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