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A, B, and C started a business with investments of ₹4,200, ₹8,400, ₹5,400 respectively. At the end of the year they got a profit of ₹6,000 and they reinvested their profits in the business. At the end of next year the ratio in which they get their profits is

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Telangana Police SI Prelims 2022 Official Paper
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  1. 7:14:9
  2. 8:11:17 
  3. 23:54:69
  4. 29:56:36 

Answer (Detailed Solution Below)

Option 1 : 7:14:9
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Detailed Solution

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Given:

Initial investments:

A = ₹4200, B = ₹8400, C = ₹5400

Profit after 1st year = ₹6000 (divided in investment ratio)

Formula used:

Profit ratio ∝ Investment × Time

Calculation:

Initial ratio = 4200 : 8400 : 5400 = 7 : 14 : 9

Total parts = 7 + 14 + 9 = 30

Profits after 1st year:

A = 6000 × 7/30 = ₹1400

B = 6000 × 14/30 = ₹2800

C = 6000 × 9/30 = ₹1800

New investments in 2nd year:

A = 4200 + 1400 = ₹5600

B = 8400 + 2800 = ₹11200

C = 5400 + 1800 = ₹7200

New ratio = 5600 : 11200 : 7200 = 7 : 14 : 9

∴ Ratio of profit at the end of next year = 7 : 14 : 9

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