A and B started a business with capital of Rs. 50,000 and 70,000 respectively and agreed that 70% of the total profit should be divided equally and the remaining profit in the ratio of their capital. If one partner gets Rs. 90 more than other, then find the total profit.
Answer & explanation
Correct answer: option 2
Investment ratio will be the profit ratio if time of investment is same.
ATQ,
A : B
Investment : 50000 : 70000
Profit : 5 : 7 = 12R (Total)
Let 12R = 30% of the total profit, which is to be distributed b/w them in the profit sharing ratio.
Therefore, total profit = \(\frac{12R}{30}\) × 100 = 40R
Now,
⇒ Difference = 7R - 5R = 2R
⇒ 2R = 90 (given)
⇒ 1R = 45
hence,
⇒ Total profit = 40R = 40 × 45 = 1800