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A and B invest ₹30,000 and ₹24,000, respectively, for one year. If they get a profit of ₹13,500, then the share of A in the profit will be:
₹7,500
₹9,450
₹9,000
₹6,000
₹7,500
Calculate the ratio of investments 30000:24000=5:4. A's share is 5+45=95 of the total profit. Simply compute 95×13500.
Investment of A = ₹30,000, Investment of B = ₹24,000, Total Profit = ₹13,500, Time period for both = 1 year.
Ashare=InvestmentA+InvestmentBInvestmentA×Total Profit
Calculate the ratio of investments 30000:24000=5:4. A's share is 5+45=95 of the total profit. Simply compute 95×13500.
Students often fail to simplify the ratio first, leading to unnecessarily large calculations with 30,000 and 24,000.
Determine the ratio of investments
Since both invest for the same time (1 year), the profit is distributed in the ratio of their investments: 30,000:24,000.
30000:24000=5:4
Find A's share proportion
Sum of the ratio parts is 5+4=9. A's share is 5 parts out of 9.
ShareA=95
Calculate the final amount
Multiply the proportion by the total profit of ₹13,500.
ShareA=95×13500=5×1500=7500
A is correct because the share of A in the profit is calculated to be ₹7,500.
This ratio-based profit sharing is identical to the concept of weighted averages used in mixture problems; always simplify ratios to their lowest terms first to save time.
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