A and B started a business with capitals of Rs 50,000 and Rs 70,000 respectively. They agreed that 70% of the total profit would be divided equally and the remaining profit in the ratio of their capitals. If one partner gets Rs 90 more than the other, find the total profit.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs 1,800
The part shared equally gives both partners the same amount, so the whole difference of Rs 90 comes from the 30% shared in the ratio of capitals.
Ratio of capitals \(=50000:70000=5:7\)
Let the total profit be \(P\); the part shared in this ratio is \(0.3P\)
Difference of the two shares of it \(\displaystyle =\frac{7-5}{12}\times0.3P=\frac{2}{12}\times0.3P=0.05P\)
\(0.05P=90\), so \(P=1800\)
The total profit is Rs 1,800.