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A and B started a business. B's investme...

A and B started a business. B's investment was 2.5 times that of A. The ratio of the time period for which A invested to that for which B invested was 3 : 1. If the total investment made by A and B together was 28000 and the annual profit earned. was 2500 less than A's investment, then what was the difference between A's share and B's share in the annual profit?

A

RS... 200

B

RS... 800

C

RS... 500

D

RS... 400

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, let's break it down: ### Step 1: Define the Investments Let A's investment be \( x \). Then, B's investment, being 2.5 times that of A, will be: \[ B = 2.5x \] ### Step 2: Total Investment According to the problem, the total investment made by A and B together is 28000. Therefore, we can write: \[ x + 2.5x = 28000 \] This simplifies to: \[ 3.5x = 28000 \] ### Step 3: Solve for A's Investment To find \( x \), divide both sides by 3.5: \[ x = \frac{28000}{3.5} \] Calculating this gives: \[ x = 8000 \] Thus, A's investment is \( 8000 \) and B's investment is: \[ B = 2.5 \times 8000 = 20000 \] ### Step 4: Time Periods of Investment The ratio of the time period for which A invested to that for which B invested is given as 3:1. Let A's time period be \( 3t \) and B's time period be \( t \). ### Step 5: Calculate Profit Sharing Ratio The profit sharing ratio is determined by the product of investment and time. For A: \[ \text{A's share} = \text{Investment of A} \times \text{Time of A} = 8000 \times 3t = 24000t \] For B: \[ \text{B's share} = \text{Investment of B} \times \text{Time of B} = 20000 \times t = 20000t \] ### Step 6: Total Profit Calculation The total profit can be calculated as: \[ \text{Total Profit} = \text{A's share} + \text{B's share} = 24000t + 20000t = 44000t \] ### Step 7: Annual Profit Relation According to the problem, the annual profit earned was 2500 less than A's investment: \[ \text{Total Profit} = 8000 - 2500 = 5500 \] ### Step 8: Set Up the Equation Equating the total profit expressions: \[ 44000t = 5500 \] Solving for \( t \): \[ t = \frac{5500}{44000} = \frac{1}{8} \] ### Step 9: Calculate Individual Shares of Profit Now, substituting \( t \) back to find A's and B's shares: - A's share: \[ \text{A's Profit} = 24000t = 24000 \times \frac{1}{8} = 3000 \] - B's share: \[ \text{B's Profit} = 20000t = 20000 \times \frac{1}{8} = 2500 \] ### Step 10: Find the Difference in Profit Shares The difference between A's share and B's share in the annual profit is: \[ \text{Difference} = \text{A's Profit} - \text{B's Profit} = 3000 - 2500 = 500 \] ### Final Answer The difference between A's share and B's share in the annual profit is: \[ \boxed{500} \]
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