Simran started a software business by investing Rs 50,000. After six months, Nanda joined her with a capital of Rs 80,000. At the end of 3 years from the start, they earned a profit of Rs 24,500. What was Simran’s share in the profit?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 10,500
Profit is shared in the ratio of capital × time. Nanda joined after 6 months, so her money was in the business for only \(36-6=30\) months.
Simran: \(50000\times36=1800000\)
Nanda: \(80000\times30=2400000\)
Ratio \(=18:24=3:4\), total 7 parts
Simran’s share \(\displaystyle =\frac{3}{7}\times24500=\) Rs 10,500
Simran’s share is Rs 10,500.