A and B entered into a partnership where A invested ₹x and B invested ₹(x + 500) for one year. At the end of the year, the profit of A is 1/6th less than the profit of B. What is the value of x?
- AOption (a)
₹1000
- BOption (b)
₹1500
- COption (c)
₹2000
- DOption (d)
₹2500
- EOption (e)
₹3000
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Correct answer
₹2500
Why this answer is correct
Shortcut Trick
Profit ratio of A : B is derived from the statement 1/6th less: If B = 6, then A = 6 − 1 = 5.
Ratio of profits PA : PB = 5 : 6. Since time is the same (1 year), Profit ratio = Investment ratio.
Difference in ratio parts = 6 − 5 = 1 unit. Given investment difference = ₹500.
∴ 1 unit = ₹500. Value of x (A's investment) = 5 units = 5 × 500 = ₹2500.
∴ The correct answer is ₹2500.
Alternate Method
Given: A's Investment = ₹x, B's Investment = ₹(x + 500), Time = 1 year.
Formulas: Profit = Investment × Time | Profit Ratio = (I1 × T1) : (I2 × T2)
⇒ Let B's profit be PB. Then A's profit PA = PB − (1/6)PB = (5/6)PB.
⇒ PA / PB = 5 / 6.
⇒ Since time is equal, x / (x + 500) = 5 / 6.
⇒ 6x = 5(x + 500) ⇒ 6x = 5x + 2500.
⇒ x = 2500.
∴ The correct answer is ₹2500.
Additional Information
Partnership Ratios
When the time period for all partners is the same, the profit is distributed solely in the ratio of their investments.
Fractional Change
If a value is 1/n less than another, it is represented as (1 − 1/n) of that value, or (n − 1)/n.
