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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
Question

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. If one partner gets Rs.240 more than the other, find the total profit made in the business.

A.

Rs.3250

B.

Rs.3520

C.

Rs.3620

D.

Rs.3720

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.

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