R and V started a business together. R invested Rs. X, while V invested Rs. 7000. After 5 months, R increased his investment by 50%. Two months later, V reduced his investment by 30%. At the end of 12 months, the total profit was Rs. 3020, out of which R received Rs. 1550 as his share. What was the initial investment made by R?

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  1. 5600
  2. 5000
  3. 4400
  4. 4800
  5. 5400

Answer (Detailed Solution Below)

Option 2 : 5000
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Detailed Solution

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Calculation

Let R initial investment = 2x

After, five-month R investment = 2x × [150 /100] = 3x

V investment after seven months = 7000 × 7 /10 = 4900

Profit ratio of R to that of V

= (2x × 5 + 3𝑥 × 7) : (7000 × 7 + 4900 × 5)

= 31x: 73500

ATQ

[31𝑥/73500] = [1550 / (3020 – 1550)]

x = 2500

R initial investment = 2x = Rs 5000

So, X = 5000

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