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Two persons A and B invested in a busine...

Two persons A and B invested in a business with 115000and 75000 rupees respectively. They agree that 40% of theprofit should be divided equally among them and rest isdivided between them according to their investment. If Agot 500 rupee more than B, then the total profit is

A

A) 3599.34

B

B) 699.34

C

C) 3958.34

D

D) 999.34

Text Solution

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The correct Answer is:
To solve the problem, we need to determine the total profit (P) based on the investments of A and B and the distribution of profit as described. Let's break it down step by step. ### Step 1: Understand the Investment A invests ₹115,000 and B invests ₹75,000. ### Step 2: Calculate the Total Investment Total investment = A's investment + B's investment Total investment = ₹115,000 + ₹75,000 = ₹190,000 ### Step 3: Determine the Profit Distribution According to the problem, 40% of the profit (P) is divided equally between A and B, and the remaining 60% is divided according to their investments. ### Step 4: Calculate the Equal Share Equal share from 40% of profit: Each person’s equal share = 40% of P / 2 = (0.40 * P) / 2 = 0.20P ### Step 5: Calculate the Remaining Profit Remaining profit to be divided according to investment = 60% of P = 0.60P ### Step 6: Calculate A's and B's Share from the Remaining Profit A's share from the remaining profit = (A's investment / Total investment) * Remaining profit = (115,000 / 190,000) * (0.60P) = (115/190) * 0.60P = (115/190) * 0.60P = (69/114) * P B's share from the remaining profit = (B's investment / Total investment) * Remaining profit = (75,000 / 190,000) * (0.60P) = (75/190) * 0.60P = (75/190) * 0.60P = (45/114) * P ### Step 7: Calculate Total Earnings for A and B Total earnings for A = Equal share + A's share from remaining profit = 0.20P + (69/114) * P = (0.20 + 69/114)P = (0.20 + 0.6053)P = (0.8053)P Total earnings for B = Equal share + B's share from remaining profit = 0.20P + (45/114) * P = (0.20 + 45/114)P = (0.20 + 0.3947)P = (0.5947)P ### Step 8: Set Up the Equation According to the problem, A earns ₹500 more than B: (0.8053)P - (0.5947)P = 500 = 0.2106P = 500 ### Step 9: Solve for P P = 500 / 0.2106 P ≈ ₹2,373.59 ### Step 10: Conclusion The total profit (P) is approximately ₹2,373.59. ---
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