In a partnership, profits are shared in the ratio of the capital invested multiplied by the time for which the capital was invested. - Krishna's capital = Rs. 9,000. He invested for the full year, which is 12 months. Krishna's effective investment = Capital × Time = $9,000 \times 12$. - Rani's capital = Rs. 12,000. She joined 4 months later, so her investment was for $12 - 4 = 8$ months. Rani's effective investment = Capital × Time = $12,000 \times 8$.The ratio of their profit shares will be the ratio of their effective investments: Krishna : Rani = $(9,000 \times 12) : (12,000 \times 8)$Simplify the ratio: Divide both sides by 1,000: $(9 \times 12) : (12 \times 8)$ $108 : 96$Divide both sides by their greatest common divisor, which is 12: $108 \div 12 = 9$ $96 \div 12 = 8$ The ratio of profit sharing is 9 : 8 (Krishna : Rani).The total profit is Rs. 2,550. The total ratio parts are $9 + 8 = 17$. Rani's share of the profit is (Rani's ratio part / Total ratio parts) × Total profit. Rani's share = $(8 / 17) \times 2550$Calculate the value: $2550 \div 17 = 150$ Rani's share = $8 \times 150 = 1200$Rani's share of the total profit is Rs. 1,200.
Krishna started a business with a capital of Rs. 9,000/-. Four months later Rani Joined him with a capital of Rs. 12,000/-. If at the end of the year, the total profit earned was Rs. 2,550/-, what will be Rani's share of profit ?
Asked in MPSC CS Prelims 2012 · Topic: Nature of Indian Economy (Developing Economy Characteristics)
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