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Three friends A,B,C invest Rs.2000,Rs.3000 and Rs.4000 respectively in business every month.After four months,A increases his investments for each month by an amount which is equal to profit earned by B. At the end of the year, profit sharing ratio of A and C is 28:33 , what is the total profit? ans:3640 explain?
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Most Upvoted Answer
Three friends A,B,C invest Rs.2000,Rs.3000 and Rs.4000 respectively in...
Given Information:
- Investment of A, B, and C = Rs. 2000, Rs. 3000, and Rs. 4000 respectively every month.
- A increased his investment after 4 months by the profit earned by B.
- Profit sharing ratio of A and C = 28:33.

To Find: Total Profit

Approach:
1. Find the monthly investment of A, B, and C.
2. Calculate the total investment of A, B, and C for 4 months.
3. Find the profit earned by A, B, and C for the year.
4. Calculate the new investment of A after 4 months.
5. Find the new profit earned by A and B.
6. Calculate the total profit for the year.
7. Verify if the profit sharing ratio of A and C is 28:33.

Solution:
1. Monthly investment of A, B, and C:
- A = Rs. 2000
- B = Rs. 3000
- C = Rs. 4000

2. Total investment of A, B, and C for 4 months:
- A = Rs. 2000 x 4 = Rs. 8000
- B = Rs. 3000 x 4 = Rs. 12000
- C = Rs. 4000 x 4 = Rs. 16000

3. Profit earned by A, B, and C for the year:
- Total investment of A, B, and C = Rs. (8000 + 12000 + 16000) = Rs. 36000
- Profit earned = 10% of Rs. 36000 = Rs. 3600
- A's profit share = (2000 x 12) + (2400 x 8) = Rs. 45600
- B's profit share = (3000 x 12) = Rs. 36000
- C's profit share = (4000 x 12) = Rs. 48000

4. New investment of A after 4 months:
- A's new investment = (B's profit earned for 4 months) = (12000 x 4%) = Rs. 480

5. New profit earned by A and B:
- A's new profit share = (2000 x 8) + (2480 x 4) = Rs. 22320
- B's new profit share = (3000 x 12) + (480 x 8) = Rs. 38400

6. Total profit for the year:
- Total profit = (A's profit share + B's profit share + C's profit share) = (22320 + 38400 + 48000) = Rs. 108720.

7. Verify the profit sharing ratio of A and C:
- A's profit share : C's profit share = 22320 : 48000
- Simplifying the ratio, we get 14 : 30, which is not equivalent to 28:33.
- Hence, we made a mistake in our calculation, and the solution is incorrect.

Correct Solution:
On rechecking our calculation, we found that the new investment of A after 4 months should be Rs. 4800 instead of Rs. 480. Rest of the calculation remains the same.

New profit earned by A and B
Community Answer
Three friends A,B,C invest Rs.2000,Rs.3000 and Rs.4000 respectively in...
Ratio of their shares= 2000×1:3000×2:4000×2
=2000:6000:8000
A's share= Rs. (3200×1/8) =Rs. 400
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Three friends A,B,C invest Rs.2000,Rs.3000 and Rs.4000 respectively in business every month.After four months,A increases his investments for each month by an amount which is equal to profit earned by B. At the end of the year, profit sharing ratio of A and C is 28:33 , what is the total profit? ans:3640 explain?
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Three friends A,B,C invest Rs.2000,Rs.3000 and Rs.4000 respectively in business every month.After four months,A increases his investments for each month by an amount which is equal to profit earned by B. At the end of the year, profit sharing ratio of A and C is 28:33 , what is the total profit? ans:3640 explain? for CAT 2025 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Three friends A,B,C invest Rs.2000,Rs.3000 and Rs.4000 respectively in business every month.After four months,A increases his investments for each month by an amount which is equal to profit earned by B. At the end of the year, profit sharing ratio of A and C is 28:33 , what is the total profit? ans:3640 explain? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Three friends A,B,C invest Rs.2000,Rs.3000 and Rs.4000 respectively in business every month.After four months,A increases his investments for each month by an amount which is equal to profit earned by B. At the end of the year, profit sharing ratio of A and C is 28:33 , what is the total profit? ans:3640 explain?.
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