Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A, B and C are partners in a business. A receives $\frac{3}{5}$ of the total profit while B and C share the remainder equally. A's profit is increased by ₹1,500, when the rate of profit is increased from 10% to 12% in a year. Then, B's share in the total profit is :

Options:

₹2,500

₹3,000

₹1,500

₹1,000

Correct Answer:

₹3,000

Explanation:

The correct answer is Option (2) → ₹3,000

Profit at 10% $(P_1)$,

$P_1=0.10×T$  [T = Total capital]

A's share of this profit,

$A_1=\frac{3}{5}×P_1=0.06×T$

Profit at 12% $(P_2)$,

$P_2=0.12×T$

A's share of this profit,

$A_2=\frac{3}{5}×0.12×T=0.072×T$

Now

$A_2-A_1=0.072T-0.06T$

$=0.012T$

$∴0.012T=1500$

$⇒T=\frac{1500}{0.012}=1,25,000$

$∴P=0.12×125000$

$=15000$

$⇒A_{share}=\frac{3}{5}×15000=9000$

$∴B_{share}=\frac{15000-9000}{2}=3,000$