A and B started a business by investing ₹10,000 and ₹18,000 respectively. After 4 months C joined the business with a capital of ₹12,000. After two more months B left the business with his capital. At the end of the year A got a share of ₹7,500 in the profit. What is the total profit earned?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹20250
Profit is shared in the ratio of capital × months invested by each partner.
A: ₹10,000 for all 12 months: \(10000\times12=120000\)
B: ₹18,000 for 6 months (leaves 2 months after C joins at the end of month 4): \(18000\times6=108000\)
C: ₹12,000 for the last 8 months: \(12000\times8=96000\)
Ratio \(120000:108000:96000=10:9:8\), a total of 27 parts
A’s 10 parts = ₹7,500, so 1 part = ₹750
Total profit \(=27\times750=\) ₹20250