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A, B and C start a business and their investments are in the ratio 4 : 3 : 6. Both A and B starts the business and C joins them after 6 months. It was decided that C will get a monthly salary of Rs 500 from the annual profits. C’s total salary came out to be 10% of the annual profit after a year. What is the share of A in the total profits?
Rs 9,500
Rs 11,500
Rs 10,800
Rs 10,000
After a year C gets salary = 500*6 = Rs 3,000 [Since C was for 6 months in the business with each month earning 500] So 10% of total profit after a year = 3,000 Total profit = Rs 30,000 A invested for 12 months, B for 12, and C for 6 months Ratio of profit shares = 4*12 : 3*12 : 6*6 = 4 : 3 : 3 Profit left after deducting salary of C = 30,000 – 3,000 = 27,000 So share of A = [4/(4+3+3)] * 27,000 =10800
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