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Ramu and Renuka enter into a partnership with investment of Rs. 50000 and Rs. 70000 respectively. Renuka gets 10% of the total profit for maintaining the business and the remaining profit is divided in the ratio of their investments. If the total profit at the end of the year is Rs. 30000, find the total share of Renuka?OptionsRs. 16000Rs. 16750Rs. 19750Rs. 11250

Question

Ramu and Renuka enter into a partnership with investment of Rs. 50000 and Rs. 70000 respectively. Renuka gets 10% of the total profit for maintaining the business and the remaining profit is divided in the ratio of their investments. If the total profit at the end of the year is Rs. 30000, find the total share of Renuka?OptionsRs. 16000Rs. 16750Rs. 19750Rs. 11250

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Solution

Step 1: Calculate the total profit that Renuka gets for maintaining the business. This is 10% of the total profit.

10/100 * 30000 = Rs. 3000

Step 2: Subtract this amount from the total profit to find the remaining profit that is to be divided in the ratio of their investments.

30000 - 3000 = Rs. 27000

Step 3: Find the ratio of their investments.

Ramu : Renuka = 50000 : 70000 = 5 : 7

Step 4: Divide the remaining profit in this ratio.

Renuka's share = 7/(5+7) * 27000 = Rs. 16200

Step 5: Add the amount Renuka gets for maintaining the business to the amount she gets from the division of the remaining profit.

3000 + 16200 = Rs. 19200

So, the total share of Renuka is Rs. 19200. None of the options given match this answer.

This problem has been solved

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