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Lakhan and Ram start a business by investing ₹48,000 and ₹72,000, respectively. What is Ram's share out of the annual profit of ₹6,530?
₹2,450
₹2,612
₹3,080
₹3,918
₹3,918
Simplify the investment ratio first: 48,000:72,000=48:72=2:3. Ram's share is 2+33=53 of the total profit.
Investment of Lakhan = ₹48,000, Investment of Ram = ₹72,000, Total annual profit = ₹6,530
Ram′sShare=(InvestmentLakhan+InvestmentRamInvestmentRam)×Total Profit
Simplify the investment ratio first: 48,000:72,000=48:72=2:3. Ram's share is 2+33=53 of the total profit.
Many students calculate the ratio but mistakenly multiply by the Lakhan's share (2/5) instead of Ram's share (3/5).
Calculate the investment ratio
Find the ratio of investment between Lakhan and Ram by dividing both amounts by their greatest common divisor, 24,000.
Ratio=48,000:72,000=2:3
Determine the fractional share
Total parts in the investment ratio are 2+3=5. Ram's portion is 3 parts out of 5.
Ram′sfraction=53
Calculate Ram's share of profit
Multiply the total profit by Ram's fractional share to find his specific profit amount.
Profit=53×6530=3×1306=3918
D is correct because calculating 3/5 of the total profit ₹6,530 results in ₹3,918.
This concept of profit sharing proportional to investment is identical to calculating dividends in stocks or shares based on capital contribution.
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