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Q: A, B and C are partners. A receives 2/3 of the profits, B and C dividing the remainder equally. A’s income is increased by Rs 200 when the rate of profit rises from 5 to 7 percent of total capital. Find the capital of B
A. Rs 5500
B. Rs 3000
C. Rs 500 D. Rs 2500

Answer and Explanation

Answer:Rs 2500

Explanation:
A, B, C receive 2/3, 1/6 and 1/6 respectively
i.e. profits are divided in the ratio 4:1:1
∴capitals are in the ratio 4:1:1
Let capital invested by A be 4x
A’s earlier profit 4*(5/100)
A’s new profit 4*(7/100)
4*(7/100) – 4*(5/100) = 200
X = 2500. Capitals A,B,C are Rs 10000, Rs 2500, Rs 2500 respectively

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