A, B and C invest in a business in the ratio 4 : 5 : 7. C is a sleeping partner, so while the profit is shared his part of the investment ratio is counted at half. Out of a profit of Rs 36,000, 25% is reinvested in the business and the rest is shared. How much does B get (in Rs)?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 10800
Profit is shared in the ratio of the investments. Because C is a sleeping partner, his part of the ratio is halved before the sharing, and only the profit left after the reinvestment is shared.
Sharing ratio \(=4:5:\frac{7}{2}=8:10:7\), total \(8+10+7=25\) parts
Profit reinvested \(=25\%\) of Rs 36,000 \(=\) Rs 9,000
Profit shared \(=36000-9000=\) Rs 27,000
One part \(\displaystyle =\frac{27000}{25}=\) Rs 1,080
B’s share \(=10\times1080=\) Rs 10,800
B gets Rs 10,800.