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A and B both start a business. The sum. ...

A and B both start a business. The sum. invested by B is ₹200 more than that invested by A. Six months after the start of the business, B leaves the business. If the total annual profit earned is ₹2800, out of which A receives ₹1600, what is the amount invested by A?

A

₹ 250

B

₹ 400

C

₹ 800

D

₹ 500

Text Solution

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The correct Answer is:
To solve the problem step by step, we will follow these steps: ### Step 1: Define the Investments Let the amount invested by A be \( X \). According to the problem, B invests ₹200 more than A. Therefore, the amount invested by B is: \[ X + 200 \] ### Step 2: Calculate the Time of Investment A invests for the entire year (12 months), while B invests for only 6 months. ### Step 3: Calculate the Total Investment in Terms of Time The total investment by A over the year is: \[ 12X \] The total investment by B over the 6 months is: \[ 6(X + 200) = 6X + 1200 \] ### Step 4: Set Up the Profit Sharing Ratio The total profit earned is ₹2800, and A receives ₹1600. Therefore, B's share of the profit is: \[ 2800 - 1600 = 1200 \] The profit sharing ratio between A and B is: \[ \frac{A's\ profit}{B's\ profit} = \frac{1600}{1200} = \frac{4}{3} \] ### Step 5: Set Up the Equation Based on Investments Since profit is directly proportional to the amount invested multiplied by the time, we can set up the following ratio: \[ \frac{12X}{6X + 1200} = \frac{4}{3} \] ### Step 6: Cross-Multiply to Solve for X Cross-multiplying gives us: \[ 3 \cdot 12X = 4(6X + 1200) \] This simplifies to: \[ 36X = 24X + 4800 \] ### Step 7: Solve for X Rearranging the equation: \[ 36X - 24X = 4800 \] \[ 12X = 4800 \] \[ X = \frac{4800}{12} = 400 \] ### Step 8: Conclusion The amount invested by A is: \[ \text{Amount invested by A} = X = ₹400 \]
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