Two partners invest Rs 1,25,000 and Rs 85,000 respectively in a business. They agree that 60% of the profit will be divided equally between them and the remaining profit will be divided in the ratio of their capitals as interest on capital. If one partner gets Rs 300 more than the other, find the total profit.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs 3,937.50
The 60% shared equally gives no difference between the partners. The whole Rs 300 difference comes from the remaining 40%, which is shared in the ratio of the capitals.
Ratio of capitals \(=125000:85000=25:17\), total \(42\) parts
Let the total profit \(=P\); the part shared by capital \(=0.4P\)
Difference in that part \(\displaystyle =\frac{25-17}{42}\times0.4P=\frac{8}{42}\times0.4P\)
\(\displaystyle \frac{8\times0.4P}{42}=300\)
\(\displaystyle P=\frac{300\times42}{3.2}=3937.5\)
The total profit is Rs 3,937.50.