Question

Directions : Based on the given passage, answer the questions that follow.
A invested Rs. 50000 in a company in the beginning of the year. After few months, B invested Rs. 40000 in the same company. At the end of the year, A received Rs. 12000 as his share of profit for the year. In the next year, A and B again invested the same amount as they did in the previous year for the whole year. After 3 months, C invested Rs. 60000 and received Rs. 4500 as his share of profit at the end of second year.
In the third year, if A, B and C invested the same amount as before in the second of the year, what is C’s share in a profit of Rs. 60000?

• A. Rs. 12000
• B. Rs. 18000
• C. Rs. 24000
• D. Rs. 32000

Answer 1

The Correct Option is C

The problem involves calculating the share of profit for C based on proportional investments made by A, B, and C over a given period.

Step-by-step Solution: 

1. Understanding past investments and profits: A invested Rs. 50000 for the entire first year and received Rs. 12000 as profit. Hence, if P represents the total profit for the first year:
   • A's share = Rs. 12000.
2. Calculate A's profit share ratio:
   • A's investment = 50000 × 12 = 600000 (investment-months).
   • Let T be the total profit for the first year. From A's share: 
     P = (600000/T) = 12000, therefore, T = 600000/12000 = 50.
3. Second Year Analysis:
   • A and B invested the same amounts as the previous year for the whole year, and C invested Rs. 60000 after 3 months, so for 9 months.
   • A's investment months = 50000 × 12 = 600000.
   • B's investment months = 40000 × 12 = 480000.
   • C's investment months = 60000 × 9 = 540000.
   • Total investment months = 600000 + 480000 + 540000 = 1620000.
   • C's profit share = 4500, thus, C's investment ratio:
     (540000/1620000) * Total Profit = 4500.
     Total Profit = 4500 / (540000/1620000) = 13500.
4. Third Year Calculation: Investments were the same with total profit Rs. 60000:
   • C's investment condition is unchanged, hence:
     C's share = (540000/1620000) * 60000 = (1/3) * 60000 = 20000.

Therefore, C's share in the profit of Rs. 60000 is Rs. 24000.