A and B start a business, with A investing the total capital of Rs.50000, on the condition that B pays A interest @ 10% per annum on his half of the capital. A is a working partner and receives Rs.1500 per month from the total profit and any profit remaining is equally d by both of them. At the end of the year, it was found that the income of A is twice that of B. Find the total profit for the year?
A. 53000
B. 58000
C. 50000
D. 59000
Explanation:
Interest received by A from B = 10% of half of Rs.50000 = 10% * 25000 = 2500.
Amount received by A per annum for being a working partner = 1500 * 12 = Rs.18000.
Let ‘P’ be the part of the remaining profit that A receives as his . Total income of A = (2500 + 18000 + P)
Total income of B = only his from the remaining profit = ‘P’, as A and B the remaining profit equally.
Income of A = Twice the income of B
(2500 + 18000 + P) = 2(P)
P = 20500
Total profit = 2P + 18000
= 2*20500 + 18000 = 59000