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A and B are partners in a firm. A invests $ 15000 and B $ 25000. A is the working partner and gets 20% of the profit for his contribution in the management of the firm. B is the sleeping partner. If the profit is $ 475, find the share of B.
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- $ 237.5
- $ 257.5
- $ 247.5
- $ 238.5
Correct Option: A
First we have to deduct the payment to be made to A from the total profit for his contribution in the management of the firm.
20% of Rs. 475 = $ 95
Balance profit = $ (475 – 95) = $ 380.
This has to be divided between
A and B in the ratio of their investments i.e., $ 15000: $ 25000 = 3 : 5
Sum of ratios = 3 + 5 = 8
| B’s share = $ 380 × | = $ 273.5 | 8 |
