A and B together starts a business with a total investment of Rs 14000 After a year both increase th...........

Quantitative Aptitude ( CCS) Partnership

A and B together starts a business with a total investment of Rs.14000. After a year, both increase their investment by 20% of their respective initial investment. If after 2 years, A earns a profit of Rs.4000 out of total profit of Rs.7000. Find the inital investment of A.

Rs.6000

Rs.5000

Rs.8000

Rs.7000

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Explanation:

Let the initial investment of A be x.
Then the initial investment of B will be Rs.(14000-x)
Total investment of A = x+1.2x = 2.2x
Total investment of B = 14000 – x +1.2*(14000-x) = Rs.(30800-2.2x)
Now, 2.2x/(30800-2.2x+2.2x) = 4000/7000
=> x = 8000
So, the initial investment of A = Rs.8000

Hence, option 3 is the correct answer.