A and B Started a Business Jointly. A Invests Rs. 16000 for 8 Months and B Remains in the Business for 4 Months. Out of Total Profit, B Claims 2/7 of the Profit. How Much Money was Contributed by B?

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Explanation

A and B started a business jointly.

A invests Rs. 16000 for 8 months and B remains in the business for 4 months.

A’s total investment for 8 months (8 x 16000 = 128000) will be 128000.

B invests (let suppose “Rs. y”) for 4 months and its investment will be 4y.

As, total profit is not given (let suppose “z”); so B claims z2/7 and A’s share in profit would be z5/7.

As profit is divided among partners according to their ratio of investment.

128000/4y = (z5/7) / (z2/7)

Through this equation; we can easily find out B’s contribution in the capital.

To Find

B’s contribution in th e capital = ?

Solution

Let suppose;

  • Initial investment of B = y
  • Initial investment of A = 16000
  • B’s investment for 4 months = 4y
  • A’s investment for 8 months = 8 x 16000 = 128000

Let suppose total profit = z

2/7 of z (B’s profit) = z2/7

A’s profit = z – z2/7 = (7z – 2z)/7 = 5z/7

Now; Investment ratio = Profit ratio

128000/4y = (z5/7) / (z2/7)

128000/4y = (5/7) / (2/7)

128000/4y = 5/2

128000 x 2 = 4y x 5

20y = 256000

y = 256000/20

y = Rs. 12800 answer

Conclusion

A and B started a business jointly. A invests Rs. 16000 for 8 months and B remains in the business for 4 months. Out of total profit, B claims 2/7 of the profit. B contributes Rs. 12800.

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