Two friends A and B invest in a buissness in partnership. B borrows 20% of A's salary, combines it with 60% of his salary and invest with A, who puts all of his remaining salary. One year later the ratio of profit of A and B is 5:3 respectively and B returns Rs.21000 to A which he borrowed from him. What is the difference between salary of A and B?
Answer & explanation
Correct answer: option 1
Let the salary of A be 10a and salary of B be 10b.
Borrowings by B from A = 20% of A's salary = 2a
investment by A = 10a-2a = 8a
investment by B = (2a + 6b)
⇒ {8a/(2a + 6b)} = 5/3 ....................(1)
⇒ 24a = 10a + 30b ⇒ (a/b) = (15/7)
Thus, B returns Rs. 21,000 to A ⇒ 2a = 21,000 ⇒ a = 10500
investment by A = 8a = Rs. 84000
Salary of A = 10a = Rs. 105000
From equation (1), Investment by B = 84000 × (3/5)
⇒ (2a + 6b) = 50400 ⇒ 6b = 50400 - 21000 ⇒ b = 4900
⇒ salary of B = 10b = Rs. 49000
Difference = Rs. (105000 - 49000) = Rs. 56000
The correct answer is Option (1) → Rs. 56000