In a business with C, A and B invest ₹50,000 and ₹60,000, respectively. The profit of C is double the profit of B. If the total profit is ₹23,000, then the profit of A (in ₹) is:

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  1. 2,500
  2. 6,000
  3. 5,000
  4. 3,000

Answer (Detailed Solution Below)

Option 3 : 5,000
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Detailed Solution

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Given:

Investment of A = ₹50,000

Investment of B = ₹60,000

The profit of C = 2 × Profit of B

Total profit = ₹23,000

Formula Used:

The ratio of profits is proportional to the investment amounts.

Total profit = Profit of A + Profit of B + Profit of C

Calculation:

Let the profit of A be PA, profit of B be PB, and profit of C be PC.

PC = 2 × PB

The ratio of investments (A : B) = 50,000 : 60,000 = 5 : 6

The ratio of profits (A : B : C) = 5 : 6 : 12 (since C = 2B)

Total ratio = 5 + 6 + 12 = 23

1 unit of profit = Total profit / Total ratio = ₹23,000 / 23

1 unit of profit = ₹1,000

PA = 5 units = 5 × ₹1,000

PA = ₹5,000

The profit of A is ₹5,000.

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