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Two friends Aaru and Chand started a business in which Aaru invests Rs. 12600 and Chand invested 1/3rd of the amount invested by Aaru. Aaru left the business after 5 months and at the same time Sandhu joins with the investment of Rs.6000. At the end of one-year Chand receives Rs. 3000 as the share of a profit.
The share of Aaru is how much percent more than the share of Sandhu at the end of one year?
40%
25%
50%
20%
None of these
- Aaru initially invests Rs. 12,600. Chand invests 1/3rd of Aaru's amount, which is Rs. 4,200.
- Aaru stays in the business for 5 months, while Chand stays for 12 months.
- Sandhu joins after 5 months with an investment of Rs. 6,000.
- Calculate the weighted capital for each:
- Aaru's contribution: Rs. 12,600 × 5
- Chand's contribution: Rs. 4,200 × 12
- Sandhu's contribution: Rs. 6,000 × 7
- The profit ratio can be calculated from the investment duration and amounts.
- Chand's share is Rs. 3,000; so find the total profit and others' shares.
- Calculate Aaru and Sandhu's profit shares based on their contribution.
- Find how much Aaru's share is more than Sandhu's in percentage terms.
- Aaru's share is indeed 50% more than Sandhu’s share.
The correct answer is Option 3: 50%
By: Parvesh Mehta ProfileResourcesReport error
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