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Directions: A and B invest in a business with an initial investment of Rs. 25 lakh each. C joins them after 6 months with an investment of Rs. 50 lakh. At the end of the year, the business earns them a profit of Rs. 24 lakh.
Q. What will be the share of C in the profit?
  • a)
    Rs. 4 lakh
  • b)
    Rs. 6 lakh
  • c)
    Rs. 8 lakh
  • d)
    Rs. 10 lakh
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Directions: A and B invest in a business with an initial investment o...
Let the profit per Rs. 25 lakh invested for a month be Rs. P.
So, total profit at the end of the business year
= 2 × 12p + 2 × 6p = 36p = 24 lakh
Or p = (2/3) lakh
Thus, C's share in the profit = Rs. 2 × 6p = Rs. 12 × (2/3) lakh = Rs. 8 lakh
Thus, answer option (3) is correct.
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Community Answer
Directions: A and B invest in a business with an initial investment o...
Given:
- A and B invest Rs. 25 lakh each as initial investment.
- C joins after 6 months with an investment of Rs. 50 lakh.
- The business earns a profit of Rs. 24 lakh at the end of the year.

To Find:
- The share of C in the profit.

Solution:
To find the share of C in the profit, we need to understand the concept of the ratio of investments and the ratio of profits.

Ratio of Investments:
- A and B invest Rs. 25 lakh each, so their total investment is Rs. 25 lakh + Rs. 25 lakh = Rs. 50 lakh.
- C joins after 6 months with an investment of Rs. 50 lakh.
- Since C joined after 6 months, the total duration of investment for A and B is 1 year, while for C it is only 6 months.
- Therefore, the ratio of investments for A, B, and C is (25 lakh × 12 months) : (25 lakh × 12 months) : (50 lakh × 6 months) = 300 : 300 : 300 = 1 : 1 : 1.

Ratio of Profits:
- The total profit earned by the business is Rs. 24 lakh.
- Since the ratio of investments is 1 : 1 : 1, the ratio of profits will also be 1 : 1 : 1.
- Therefore, the share of C in the profit is (1/3) × 24 lakh = Rs. 8 lakh.

Answer:
The share of C in the profit is Rs. 8 lakh (option c).
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A wealthy investor who wants to invest his money is approached by five counsellors who want to convince him to invest his money with their respective firms. Having very little knowledge of finance, the investor decides to just invest a certain sum of money with each one of them and judge for himself. He withdraws a total sum of 100000 from his bank account and gives different amounts of money to the five counsellors and gets a total profit of 22950 in return. After six months he makes the following observations about his money invested and the profits earned:1. The highest investment has given him the third lowest profit percentage.2. The least investment is two thousand less than half the highest investment.3. The second highest investment is twice the second lowest investment.4. The profit on the highest investment is 1/5 times the investment and the profit on the least investment is 50%.5. Three sums of his investments are in AP with 1000 as the common difference and all his investments are more than 10000.6. The profit percentage of the second lowest investment and the percentage share of the highest investment in total investment are the same.7. The least profit percent is 9% and the second lowest profit percentage is 2.5 percentage points less than the third lowest profit percentage.8. The second highest profit percent is 30%. Q. Which of the following investments has the largest percentage point difference between the profit percentage and the investment share?

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Directions: A and B invest in a business with an initial investment of Rs. 25 lakh each. C joins them after 6 months with an investment of Rs. 50 lakh. At the end of the year, the business earns them a profit of Rs. 24 lakh.Q. What will be the share of C in the profit?a)Rs. 4 lakhb)Rs. 6 lakhc)Rs. 8 lakhd)Rs. 10 lakhCorrect answer is option 'C'. Can you explain this answer?
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Directions: A and B invest in a business with an initial investment of Rs. 25 lakh each. C joins them after 6 months with an investment of Rs. 50 lakh. At the end of the year, the business earns them a profit of Rs. 24 lakh.Q. What will be the share of C in the profit?a)Rs. 4 lakhb)Rs. 6 lakhc)Rs. 8 lakhd)Rs. 10 lakhCorrect answer is option 'C'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions: A and B invest in a business with an initial investment of Rs. 25 lakh each. C joins them after 6 months with an investment of Rs. 50 lakh. At the end of the year, the business earns them a profit of Rs. 24 lakh.Q. What will be the share of C in the profit?a)Rs. 4 lakhb)Rs. 6 lakhc)Rs. 8 lakhd)Rs. 10 lakhCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: A and B invest in a business with an initial investment of Rs. 25 lakh each. C joins them after 6 months with an investment of Rs. 50 lakh. At the end of the year, the business earns them a profit of Rs. 24 lakh.Q. What will be the share of C in the profit?a)Rs. 4 lakhb)Rs. 6 lakhc)Rs. 8 lakhd)Rs. 10 lakhCorrect answer is option 'C'. Can you explain this answer?.
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