A, B and C start a small business. A contributes 1/5th of the total capital invested in the business. B contributes as much as A and C together. Total profit at the end of the year was $5,200. What was C's profit share? : Crackverbal Support

A, B and C start a small business. A contributes 1/5th of the total capital invested in the business. B contributes as much as A and C together. Total profit at the end of the year was $5,200. What was C's profit share? Print

Modified on: Tue, 12 Oct, 2021 at 12:16 PM

CONCEPT:RATIOS AND PARTNERSHIPS
-The share of an individual in the profit is in proportion to his investment made.
-If the investment of A and B are in the ratio a:b,then in the profit of x$, the shares of A and B are a/(a +b)*x $ and b/(a +b)*x $
respectively.

SOLUTION:

Let total investment be $100.
Then A's investment is 1/5*100= $20
Thus(B+C)'s investment=100-20=$80;-----(1)

Given, B=A+C
=>B-C=A=$20--------(2)

From (1) and (2) 2B=100=>B's investment is=$50
Hence C's investment is=100-(20+50)=30
Thus investment ratio of A:B:C =20:50:30=2:5:3
C's share thus is 3/10*5200=$1560 (C)

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A, B and C start a small business. A contributes 1/5th of the total capital invested in the business. B contributes as much as A and C together. Total profit at the end of the year was $5,200. What was C's profit share? Print

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