Question

Simran started a software business by investing 50000rs. After six months Nanda joined her with a capital of 80000rs. After 3 years they earned a profit of 24500rs. What was Simran's share in that profit?
A. Rs 9423
B. Rs 10500
C. Rs 12500
D.Rs 14000

Answer 1

Hint: According to the question given in the question we have to find the Simran share in that profit when Simran started a software business by investing 50000rs. After six months Nanda joined her with a capital of 80000rs. After 3 years they earned a profit of 24500rs, so first of all we have to find the ratio of Simran investment in the software business with the Nanda investment.
So, first of all we have to calculate the Simran investment in the software business by investing 50000rs for 3 years or 36 months by multiplying the amount with the total number of months in which the amount submitted. Same as we can find the Nanda investment in the software business by multiplying the Nanda’s amount with the time of investment which is 30 months because Nanda joined after six months in the software business.
Now, to obtain a share in the profit of a software business we have to multiply the obtained ratio with the profit earned after 3 years.

Complete step-by-step answer:
Step 1: First of all we have to calculate the total investment of Simran in the software business and we can obtain it by multiplying the amount 50000rs with the total number of 36 months in which the amount submitted by Simran in the software business.
Hence,
Simran’s investment in the business$ = 50000 \times 36rs$
Simran’s investment in the business$ = 1800000rs$
Step 2: Now, we have to calculate the total investment of Nanda in the software business and we can obtain it by multiplying the amount with the total number of 30 months in which the amount submitted by Nanda in the software business after six months.
Nanda’s investment in the business$ = 80000 \times 30rs$
Nanda’s investment in the business$ = 2400000rs$
Step 3: Now, we can find the ration of simran’s and Nanda’s investment in the software business.
Hence, Ratio
$
   = \dfrac{{1800000}}{{2400000}} \\
   = \dfrac{3}{4} \\
 $
But for the simran investment the ratio is $ = \dfrac{3}{{3 + 4}}$
But for the simran investment the ratio is$ = \dfrac{3}{7}$
Step 4: Now to obtain the Simran share in that profit we have to multiply the ration of the simran’s investment with the profit earned after 3 years.
$ = \dfrac{3}{7} \times 24500rs$
So, Simran share in the profit$ = 10500rs$

Hence, by finding the Simarn and Nanda investment ration we have obtain the Simran share in that profit which is $ = 10500rs$

Note: To find the total investment of Nanda we have to subtract the six months from the 36 months because Nanda joined the software business after 6 months of Simran.
After obtaining the ratio of Simran and Nanda investment it is necessary to find the ratio of Simran investment to find the Simran share in that profit.