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A, B and C started a business by investing Rs 55,000, Rs 65,000 and Rs 75.000 respectively. A is a working partner and gets 20% of the
profit as working allowance and remaining is distributed in the proportion of their investment. If the money received by C is Rs27,000
what is the total profit?
Rs 70,200
Rs 87,750
Rs 76,850
Rs 85,500
- A, B, and C started a business with different investment amounts.
- Total profit needs calculation based on how it is distributed:
- A gets 20% of the profit as a working allowance.
- Remaining 80% of the profit is divided according to their capital contributions.
- Ratio of their investments is calculated as A:B:C = 55,000:65,000:75,000.
- The money received by C is Rs 27,000 based on his investment proportion.
- Let’s find the total profit (P):
- C’s share is (75,000/195,000) * 0.8P = Rs 27,000.
- 0.8P = Rs 70,200.
- Total profit, P = Rs 87,750.
- Based on calculations, the correct option is:
Option 2: Rs 87,750
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