A, B and C started a business with their capitals in the ratio 1 : 4 : 4. At the end of every 3 months, A doubles his capital, B halves his capital and C leaves his capital unchanged. At the end of the year, if B’s share in the profit was ₹4,50,000, then the total profit(in ₹ lakhs) was ____.
Answer & explanation
Correct answer: option 4
Capital × time = Profit
Capital ratio of A, B and C = 1 : 4 : 4
New Capital of A at the end of the year = (1 + 2 + 4 + 8)R × 3 = 15R × 3
New Capital of B at the end of the year = (4 + 2 + 1 + 0.5)R × 3 = 7.5R × 3
New Capital of C at the end of the year = (4 + 4 + 4 + 4)R × 3 = 16R × 3
Capital of A, B and C at the end of the year = 15 : 7.5 : 16
7.5R = 4,50,000
1R = \(\frac{450000}{7.5}\) = 60000
(15 + 7.5 + 16 = 38.5)R = 60000 × 38.5 = 2310000
= 23.1 lakhs