Question

Two businessmen A and B invest in a business in the ratio 5 : 8. They decided to reinvest 30% of the profit they earned back into the business. The remaining profit they distributed amongst themselves. If A's share of the profit was Rs 87,500 then how much profit (in Rs) did the business make?

A) 227000 B) 250000 C) 375000 D) 325000

Answer 1

Step-by-step explanation:

Ratio of investment 5: 8

Ratio of profit distribution will also be 5: 8

Let us take total profit = P

They decided to Reinvest 30% profit Remaining 70% profit is distributed on = 0.7P

A share profit = 5/13 × 0.7P

7P / 26 = 87500

P = 325000 Rs...