A, B, and C invested some money in the ratio of 7 : 11: 14 and out of the total profit of Rs.300000, they donated Rs.44000 to the trust. P takes 6.25% of the remaining profit as an active partner and remaining profit they distribute according to their capital. Find the total profit of A at the end of one year.
Answer & explanation
Correct answer: option 3
Total profit = 300000, Donation = 44000
Remaining profit = 256000
Now, 6.25 = \(\frac{1}{16}\)
A takes extra \(\frac{1}{16}\) of 256000
= \(\frac{1}{16}\) × 256000 = 16000
Thereafter remaining profit = 256000 - 16000 = 240000
*(If time of investment is same then investment ratio becomes profit sharing ratio)
A : B : C
Profit: 7 : 11 : 14 = 32R
⇒ 32R = 240000
⇒ 1R = 7500
⇒ A's profit ratio = 7R = 7 × 7500 = 52500
Now,
⇒ Total profit of A = 52500 + 16000 = 68500