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A and B start a business with a capital investment Rs. 15000 and Rs. 18000 respectively. After six months A doubled his investment whereas B halved his investment. If at the end of the year A receives a profit of Rs. 12500 then find the total profit earned by A and B together.

A and B start a business with a capital investment Rs. 15000 and Rs. 18000 respectively. After six months A doubled his investment whereas B halved his investment. If at the end of the year A receives a profit of Rs. 12500 then find the total profit earned by A and B together. Correct Answer Rs. 20000

Given:

A's capital investment for first six months = Rs. 15000

B's capital investment for first six months = Rs. 18000

A's capital investment for last six months = Rs. (2 × 15000) = Rs. 30000

B's capital investment for last six months = Rs. = Rs. 9000

Profit received by A = Rs. 12500

Concept used:

(A's profit share) ∶ (B's profit share) = (A's capital investment × A's time period of investment) ∶ (B's capital investment × B's time period of investment) 

Calculations:

Let the profit earned by B be Rs. x

⇒ (A's profit share) ∶ (B's profit share) =  ∶

⇒ 12500/x = (45000 × 6)/(27000 × 6)

⇒ 12500/x = 45/27

⇒ 12500/x = 5/3

⇒ x = 12500 × (3/5)

⇒ x = Rs. 7500

Total profit earned = 12500 + 7500 = Rs. 20000

∴ The total profit earned by A and B together is Rs. 20000

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