Rahul and Salim entered into a partnership and earned a profit of Rs. 25,000. Salim gets a fixed profit percentage 10% for all profit earned. The remaining profit is then divided between the two partners in the ratio of their investments. What is the profit earned by Salim, if Rahul invested Rs. 20,000 for 6 months and Salim contributed Rs. 30,000 for 8 months ?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 17,500
Salim received 10% of Rs. 25,000
$\frac{10}{100}×25,000=2,500$
Remaining Profit = 25,000 - 2,500 = 22,500
The profit is now divided based on investment,
$\frac{Rahul}{Salim}=\frac{1,20,000}{2,40,000}=\frac{1}{2}$
⇒ Salim shares from the remaining profit
$\frac{2}{3}×22,500=17,500$