Partnership Ques 4

Question

A and B started a business with initial investments in the respective ratio of $18: 7$. After four months from the start of the business, A invested Rs. 2000 more and B invested Rs. 7000 more. At the end of one year, if the profit was distributed among them in the ratio of 2 : 1 respectively, what was the total initial investment with which A and B started the business?

(1) Rs. 50,000

(2) Rs. 25,000

(3) Rs. 1,50,000

(4) Rs. 75,000

(5) Rs. 1,25,000

(IBPS RRBs Officer Scale-I & II CWE 13.09.2015)

Show Answer

Answer: (1)

Solution: (1)

A’s initial investment $=$ Rs. $18 x$

B’s initial investment $=$ Rs. $7 x$

According to the question,

$\frac{18 x \times 4+(18 x+2000) \times 8}{7 x \times 4+(7 x+7000) \times 8}=\frac{2}{1}$

$\Rightarrow \frac{18 x+(18 x+2000) \times 2}{7 x+(7 x+7000) \times 2}=\frac{2}{1}$

$\Rightarrow 18 x+36 x+4000=14 x+$ $28 x+28000$

$\Rightarrow 54 x-42 x=28000-4000$

$\Rightarrow 12 x=24000$

$\Rightarrow x=\frac{24000}{12}=2000$

$\therefore$ Total initial investment of A and B$=25 x$ $=25 \times 2000=$ Rs. 50000