Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Numbers, Quantification and Numerical Applications

Question:

A and B invested ₹10,000 and ₹12,000 in a business two years ago. After 1 year their net loss was ₹880. And during the $2^{nd}$ year their net profit was ₹2530. So, the present worth of A if the profit (loss) in distributed in the ratio of capitals at the beginning of each year is :

Options:

₹12,000

₹10,750

₹10,000

₹11,650

Correct Answer:

₹10,750

Explanation:

$\text{Initial investments: }A=10000,\;B=12000.$

$\text{After 1 year, net loss}=880.$

$\text{Loss ratio} =10000:12000=5:6.$

$\text{Loss of A}=\frac{5}{11}\times880=400.$

$\text{Capital of A at beginning of 2nd year}=10000-400=9600.$

$\text{Capital of B at beginning of 2nd year}=12000-480=11520.$

$\text{During 2nd year, net profit}=2530.$

$\text{Profit ratio}=9600:11520=5:6.$

$\text{Profit of A}=\frac{5}{11}\times2530=1150.$

$\text{Present worth of A}=9600+1150=10750.$

$\text{Present worth of A}=₹10,750.$