Correct option is B
Given:
Two partners invest Rs. 87000 and Rs. 72500 respectively, in a business and agree that 25% of the profit should be divided equally between them and the remaining profit is to be treated as interest on capital.
One partner gets Rs. 240 more than the other
Solution:
Ratio of the investment of two partners
⇒ 87000 : 72500
⇒ 6 : 5
Let the common ratio be Q.
Interest on their investment is 6Q and 5Q respectively.
Total profit as interest on capital = 6Q + 5Q = 11Q
11Q consists (100 - 25)% i.e. 75% of the total profit.
Total profit = 11Q ÷ 75% = 44Q/3 ....(1)
According to the question,
6Q - 5Q = 240
⇒ Q = 240 ....(2)
Now, the total profit
⇒ (44 × 240)/3 (From 1 and 2)
⇒ Rs. 3520
The total profit made in the business is Rs. 3520.