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A, B and C are partners. A receives 9/10...

A, B and C are partners. A receives 9/10 of the profit and B and C share the remaining profit equally. A's income is increased by 270 when the profit rises from 12 to `15%`. Find the capital invested by B and C each

A

`' 5000`

B

`' 1000`

C

`'500`

D

`'1500`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, let's break it down: ### Step 1: Understand the profit distribution A receives \( \frac{9}{10} \) of the total profit, while B and C share the remaining profit equally. This means that B and C together receive \( \frac{1}{10} \) of the total profit, and each of them receives \( \frac{1}{20} \) of the total profit. ### Step 2: Define the total investment Let the total investment of A, B, and C be \( 10x \). Therefore: - A's share of the profit = \( \frac{9}{10} \) of total profit - B's share of the profit = \( \frac{1}{20} \) of total profit - C's share of the profit = \( \frac{1}{20} \) of total profit ### Step 3: Calculate A's profit at different rates When the profit rate is 12%, A's profit is: \[ A's\ profit\ at\ 12\% = \frac{9}{10} \times 12\% \times 10x = \frac{9 \times 12x}{100} = \frac{108x}{100} \] When the profit rate is 15%, A's profit is: \[ A's\ profit\ at\ 15\% = \frac{9}{10} \times 15\% \times 10x = \frac{9 \times 15x}{100} = \frac{135x}{100} \] ### Step 4: Determine the increase in A's profit The increase in A's profit when the profit rate changes from 12% to 15% is: \[ Increase\ in\ A's\ profit = A's\ profit\ at\ 15\% - A's\ profit\ at\ 12\% \] Substituting the values: \[ Increase = \frac{135x}{100} - \frac{108x}{100} = \frac{27x}{100} \] According to the problem, this increase is equal to 270: \[ \frac{27x}{100} = 270 \] ### Step 5: Solve for \( x \) To find \( x \), multiply both sides by 100: \[ 27x = 27000 \] Now, divide by 27: \[ x = \frac{27000}{27} = 1000 \] ### Step 6: Calculate total investment Now that we have \( x \), we can find the total investment: \[ Total\ investment = 10x = 10 \times 1000 = 10000 \] ### Step 7: Find the capital invested by B and C Since B and C share the remaining profit equally, their individual investments are: \[ B's\ investment = C's\ investment = \frac{Total\ investment\ by\ B\ and\ C}{2} = \frac{10000 - A's\ investment}{2} \] A's investment is: \[ A's\ investment = \frac{9}{10} \times 10000 = 9000 \] Thus, the total investment by B and C is: \[ Total\ investment\ by\ B\ and\ C = 10000 - 9000 = 1000 \] Therefore, each of their investments is: \[ B's\ investment = C's\ investment = \frac{1000}{2} = 500 \] ### Final Answer The capital invested by B and C each is **500**. ---
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