A and B invest in a business in the ratio 3 : 7 and make a profit of Rs 60,000 in a year. They reinvest 40% of the profit in the business and share the remaining profit between themselves. How much does A get?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 10,800
Only the profit left after the reinvestment is shared, and it is shared in the ratio of the investments, 3 : 7.
Profit reinvested \(=40\%\) of Rs 60,000 \(=\) Rs 24,000
Profit shared \(=60000-24000=\) Rs 36,000
A’s share \(\displaystyle =\frac{3}{3+7}\times36000=\frac{3}{10}\times36000=\) Rs 10,800
A gets Rs 10,800.