A , B and C started a business with capital in the ratio of 8 : 6 : 5. After 8 months A withdrew 25% of his capital while C increased 20% of his investment if at the end of the year total profit of the business is Rs14000 then what is the profit share of C?
- AOption (a)
12000
- BOption (b)
7000
- COption (c)
4000
- DOption (d)
8000
- EOption (e)
6000
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Correct answer
4000
Why this answer is correct
Shortcut Trick
Ratio of Profit = Σ(Capital × Time)
A : B : C = (8 × 8 + 6 × 4) : (6 × 12) : (5 × 8 + 6 × 4)
A : B : C = (64 + 24) : 72 : (40 + 24) = 88 : 72 : 64
Simplified Ratio = 11 : 9 : 8. Total units = 11 + 9 + 8 = 28 units.
28 units = Rs. 14000 ⇒ 1 unit = Rs. 500. Profit of C = 8 × 500 = Rs. 4000. ∴ The correct answer is Rs. 4000.
Alternate Method
Given → Initial Capital Ratio A:B:C = 8:6:5. Time = 12 months.
Formulas → Profit Share = Capital × Time Period
⇒ A's investment: (8 × 8 months) + (8 × 75% × 4 months) = 64 + 24 = 88.
⇒ B's investment: (6 × 12 months) = 72.
⇒ C's investment: (5 × 8 months) + (5 × 120% × 4 months) = 40 + 24 = 64.
⇒ Total Investment Ratio A:B:C = 88 : 72 : 64 = 11 : 9 : 8.
⇒ Sum of ratios = 11 + 9 + 8 = 28.
⇒ C's share = (8 ÷ 28) × 14000 = 8 × 500 = 4000.
∴ The correct answer is Rs. 4000.
Additional Information
Partnership Basics
Profit is distributed based on the product of Capital and Time. If time is constant, profit ratio equals capital ratio.
Percentage Changes
To calculate a 25% decrease, multiply by 0.75. For a 20% increase, multiply by 1.20.
