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Explanation
A and B invest in a business in the ratio 3:2.
5% of the total profit goes to charity.
A’s share is Rs. 855.
Let suppose the total profit is “y”. The profit that goes to the charity would be “y/20” and the net profit [y – y/20 = (20y – y)/20 = 19y/20] will be 19y/20.
A’s profit is given (Rs. 855), then B’s profit [19y/20 – 855) = (19y – 17100)/20] would be (19y – 17100)/20.
As, profit is divided among partners according to their investment ratio and investment ratio is 3:2.
So the final expression we have; 3/2 = 855 / (19y – 17100)/20
Through this equation; we can easily find out total profit.
To Find
Total profit = ?
Solution
Let suppose;
Total profit = y
Profit given to charity (5% of y) = y/20
Net profit (left over profit after giving 5% to charity) = y – y/20 = 19y/20
Profit of A (given) = 855
Profit of B = 19y/20 – 855 = (19y – 17100)/20
Initial investment ratio of A and B (given) = 3:2
Investment ratio = profit ratio
3/2 = 855 / (19y – 17100)/20
3/2 = (855 x 20)/(19y – 17100)
3/2 = 17100/(19y – 17100)
3 x (19y – 17100) = 2 x 17100
57y – 51300 = 34200
57y = 34200 + 51300
57y = 85500
y = 85500/57
y = Rs. 1500 answer
Conclusion
A and B invest in a business in the ratio 3:2. If 5% of the total profit goes to charity and A’s share is Rs. 855 then the total profit will be Rs. 1500.
