A,B and C started a business by investing Rs 7,000, Rs 5,000 and Rs 3,000 respectively. If they earned a profit of Rs 9,000 , find the share of A ?
Note: Rs = Indian Rupees
A,B and C started a business by investing Rs 7,000, Rs 5,000 and Rs 3,000 respectively. If they earned a profit of Rs 9,000 , find the share of A ?
Note: Rs = Indian Rupees
You need to make proportion. $\frac{A}{X}=\frac{B}{Y}=\frac{C}{Z}=\frac{15000}{9000}$
$X=\frac{7000\cdot9000}{15000}=4200$
$Y=\frac{5000\cdot9000}{15000}=3000$
$Z=\frac{3000\cdot9000}{15000}=1800$
Test the solution: $X + Y + Z = 9000$
The answer depends on the agreed model of sharing the profits. E.g. the founders could have negotiated equal shares of the profit, in this case A would receive Rs 3,000.
Another (possibly more common) model is to share profits in the same proportions as the made investments. A's investment quota is $$ \frac{7,000}{7,000+5,000+3,000} = \frac{7}{15} \approx 47\% . $$ Using this model A would receive $$ \mbox{RS }9,000 \, \frac{7}{15} = \mbox{RS } 4,200 . $$