A and B have respectively $3000 and $4000 in a business. A receives $10/month out of the profit for running the business and the rest of the profit is divided in proportion of their investment. If in a year, A totally receives $390, what does B receive?
The Usual Method
Let P be the profit at the end of the year.
Since A gets $10/month, at the end of the year, he receives (10 x 12) = $120.
Hence, balance profit to be distributed between A and B = P – 120 (i.e distributable profit)
A gets and
But A gets $390
Hence B’s share =
Estimated Time to arrive at the answer = 60 seconds.
If A receives $390 which includes $10 x 12 = $120
A’s share of distributable profit = 390 – 120 = 270
A and B should distribute the distributable profit in the ratio of their investments i.e. 3 : 4.
Now A’s share = 270, than B’s share will be = $360 (according to the proportion)
Estimated Time to arrive at the answer = 15 seconds.