A and B invest in a business in the ratio 5 : 8. They reinvest 30% of the profit in their business and distribute the remaining profit among themselves. If A got the profit of Rs.87,500/-, then find their total profit?
Answer & explanation
Correct answer: option 4
A : B
Profit : 5 : 8 = 13R
Here,
13R is 70% of the total profit.
A's profit = \(\frac{5}{13}\) x \(\frac{70 }{100}\) x Total Profit = 87,500
⇒ \(\frac{7}{26}\) x Total Profit = 87,500
⇒ Total Profit = 3,25,000