A and B invested Rs. 4000 and Rs. 6000 respectively in a business. C joins them after x months with the investment of Rs. 5000. If after one-year A receives Rs. 240 and C receives Rs. 100 as a share of profit, then find the value of x.
This questions was previously asked in
RBI Grade B (9 November 2019)
Explanation:
- A's investment: Rs. 4000 for 12 months.
- B's investment: Rs. 6000 for 12 months.
- C's investment: Rs. 5000 for (12-x) months.
Profit Sharing:
- A's share: Rs. 240
- C's share: Rs. 100
The profit is based on the ratio of their investments multiplied by their time in business.
1. Calculate the total profit share:
- A's profit share per unit investment per month: \(240/(4000*12)\)
- C's profit share per unit investment per month: \(100/(5000*(12-x))\)
2. Set the ratios equal, since it’s the same total profit basis:
- \((4000*12)/(5000*(12-x)) = 240/100\)
3. Solve the equation for x.
- Option 1 (x=4)
- Option 2 (x=5)
- Option 3 (x=6)
- Option 4 (x=8)
- Option 5 (x=9)
Given that the equation holds when calculating x and substituting into the ratio, Option 4 - 8 is the correct solution.
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By: Parvesh Mehta