| Radhika 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 distributed between them in the ratio of their investments. If the total profit at the end of the years is Rs. 30000, find the total share of Renuka. |
A) Rs. 16575
B) Rs. 21500
C) Rs. 18750
D) Rs. 11250
Correct Answer: C
Solution :
| Ratio of capital of Radhika and Renuka |
| \[=50000:70000=5:7\] |
| Share of Renuka for maintaining the business |
| \[=\frac{10}{100}\times 30000=3000\] |
| Remaining profit \[=30000-3000=27000\] |
| Renuka's share in the remaining profit |
| \[=\frac{7}{12}\times 27000=15750\] |
| Hence, Renuka's is total share |
| \[=15750+3000=18750\] |
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