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A and B started a business with initial investment in the respective ratio of 18 : 7. After four months from start of the business, A invested Rs.2000 more and B invested Rs.7000 more. At the end of one year if the profit was distributed among them in the ratio of 2 : 1 respectively, what was the total initial investment with which A and B started the business?

A and B started a business with initial investment in the respective ratio of 18 : 7. After four months from start of the business, A invested Rs.2000 more and B invested Rs.7000 more. At the end of one year if the profit was distributed among them in the ratio of 2 : 1 respectively, what was the total initial investment with which A and B started the business? Correct Answer 50000

Given:

A and B started a business with initial investment in the respective ratio of 18 : 7. After four months from start of the business, A invested Rs.2000 more and B invested Rs.7000 more. At the end of one year if the profit was distributed among them in the ratio of 2 : 1 respectively

Calculation:

Let the initial investment of A and B be Rs.18x and 7x respectively.

Total investment of A = 18x × 4 + (18x + 2000) × 8

⇒ 216x + 16000

Total investment of B = 7x × 4 + (7x + 7000) × 8

⇒ 84x + 56000

According to question,

(216x + 16000)/(84x + 56000) = 2/1

⇒ 216x + 16000 = 168x + 112000

⇒ 48x = 96000

⇒ x = 2000

A's initial investment = 18x

⇒ 36000

B's initial investment = 7x

⇒ 14000

Total investment of A and B = Rs. 50000

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