Question

A and B start a business with investments of Rs. 4000 and Rs. 6000. If the profit after 1 year is Rs. 5000, what is A’s share?

• A. Rs. 2000
• B. Rs. 2500
• C. Rs. 3000
• D. Rs. 3500

Hint:

Divide profit in the ratio of investments using \( \frac{\text{Investment}}{\text{Total investment}} \times \text{Profit} \).

Answer 1

The Correct Option is A

We need A’s share of the profit.
- Step 1: Determine profit-sharing ratio. Profit is divided in the ratio of investments:
\[ \text{A : B} = 4000 : 6000 = 2 : 3 \] - Step 2: Calculate total parts. Total parts = \( 2 + 3 = 5 \).
- Step 3: Compute A’s share. Total profit = Rs. 5000. A’s share:
\[ \frac{2}{5} \times 5000 = 2 \times 1000 = 2000 \] - Step 4: Verify. B’s share = \( \frac{3}{5} \times 5000 = 3000 \). Total = \( 2000 + 3000 = 5000 \). Correct.
- Step 5: Check options.
- (a) 2000: Correct.
- (b) 2500: Incorrect.
- (c) 3000: B’s share.
- (d) 3500: Incorrect.
- Step 6: Alternative metho(d) Ratio 2:3 means A gets \( \frac{2}{2+3} \) of profit. Same result.
Thus, the answer is a.