A and B started a business in partnership investing Rs. 20,000 and Rs. 15,000 respectively. After six months, C joined them with Rs. 20,000. What will be B’s share in total profit of Rs. 25,000 earned at the end of 2 years from the starting of the business?
To find B’s share in the total profit, we need to calculate the ratio of investments made by A, B, and C over the 2-year period.
A invested Rs. 20,000 for 2 years.
B invested Rs. 15,000 for 2 years.
C invested Rs. 20,000 for 1.5 years (joined after 6 months).
Now, let’s calculate the products of each person’s investment and the time period:
A: 20,000 × 2 = 40,000
B: 15,000 × 2 = 30,000
C: 20,000 × 1.5 = 30,000
The profit-sharing ratio is the ratio of these products:
A : B : C = 40,000 : 30,000 : 30,000
To simplify the ratio, divide each term by the smallest common factor (which is 10,000):
A : B : C = 4 : 3 : 3
Now, we can find B’s share in the total profit:
B’s share = (3/10) × Total Profit
= (3/10) × 25,000
= 7,500
The final answer is: 7500
