A and B invest in the ratio 3 : 2. If 5% of the total profit goes to charity and A's share of the remainder is ₹855, what is the total profit?
Aptitude
Partnership
Difficulty: Easy
Choose an option
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A₹1,500
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B₹1,425
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C₹1,650
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D₹1,710
Answer
Correct Answer: ₹1,500
Explanation
Problem restatementA fixed 5% of the total profit P is donated. The remaining 95% is divided between A and B in the ratio 3 : 2, with A's portion equal to ₹855. Find P.
Given data
- Charity = 5% of P → distributable = 95% of P.
- A's share from distributable = (3/5) × 0.95P = ₹855.
Concept/ApproachSet up an equation for A's share and solve for P.
Step-by-step calculation (3/5) × 0.95P = 0.57P = 855 P = 855 ÷ 0.57 = ₹1,500
VerificationDistributable = 0.95 × 1,500 = ₹1,425. A's share = 3/5 × 1,425 = ₹855 (matches).
Common pitfalls
- Applying 5% charity after taking A's share instead of before.
Final Answer₹1,500