A and B together invested 64000 for 4 year A decrease amount by 5000 every year whereas B increase the amount by 4000 every year if the profit sharing ratio is 13:12 find the investment done by A
Answers
Given : A and B together invested 64000 for 4 year A decrease amount by 5000 every year whereas B increase the amount by 4000 every year .
profit sharing ratio is 13:12
To Find : the investment done by A
Solution:
Let say A invested = 1000A
then B Invested = 64000 - 1000A = 1000(64 - A)
A decrease amount by 5000 every year
A's investment
= 1000A + (1000A - 5000) + (1000A - 10000) + 1000A - 15000
= 4000A - 30000
= 4000(A - 7.5)
B increase the amount by 4000 every year
=> 1000(64 - A) +( 1000(64 - A) + 4000) +( 1000(64 - A) + 8000)+( 1000(64 - A) + 12000)
= 4000(64 - A) + 24000
= 4000(70 - A)
profit sharing ratio is 13:12
=> 4000(A - 7.5) / 4000(70 - A) = 13/12
=> 12A - 90 = 910 - 13A
=> 25A = 1000
=> A = 40
1000A = 40000
Investment done by A = 40000
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