Question

A and B started a business with investment of ₹ 4500 and ₹ 2700 respectively.Find the share of profit of A in the total annual profit of ₹ 256.

• A. 170
• B. 120
• C. 160
• D. 140

Answer 1

The Correct Option is C

To determine the share of profit for A in the total annual profit, we need to consider the ratio of their initial investments and then apply it to the total profit.

1. First, find the ratio of the investments made by A and B. A's investment is ₹ 4500 and B's investment is ₹ 2700. The ratio can be calculated as follows: \(\text{Ratio of A to B} = \frac{4500}{2700}\).
2. Simplify the fraction to get the simplest form: \(\frac{4500}{2700} = \frac{4500 \div 900}{2700 \div 900} = \frac{5}{3}\).
3. This simplified ratio of investments is 5:3. This means A and B would share the total profit of ₹ 256 in this ratio.
4. Calculate A's share of the profit using the ratio: \(\text{A's Share} = \frac{5}{5+3} \times 256\).
5. Calculate the denominator: \(\text{Total parts} = 5 + 3 = 8\).
6. Substitute back to find A's share: \(\text{A's Share} = \frac{5}{8} \times 256\).
7. Now compute the multiplication: A's Share = 5 \times 32 = 160.

Therefore, the share of profit for A is ₹ 160. Thus, the correct answer is 160.