A and B started a business with an initial amount of 8000. They are invested in 3:2 proportions. After the end of the year they have 60% profit. How much amount will A get?

Appeared in: NORCET 7 Prelims -2024

Explanation

First, calculate the total profit earned, which is 60% of the initial investment of 8000. This amounts to 4800.
The investment ratio of A to B is 3:2. The total parts of the ratio are 3 + 2 = 5.
A's share of the profit is proportional to their investment, which is 3 out of 5 parts.
To find A's profit, calculate (3/5) of the total profit: (3/5) * 4800 = 2880.

Option A: This value represents B's share of the initial investment (2/5 of 8000 = 3200), not A's share of the profit.
Option C: This is the total profit amount (60% of 8000 = 4800), not A's individual share of the profit.
Option D: This is B's share of the profit, calculated as (2/5) of the total profit (4800), which equals 1920.

Visual 1: Pie Chart - A pie chart illustrating the profit distribution, with a slice representing A's share (2880) and another for B's share (1920) out of the total profit of 4800.
Visual 2: Bar Graph - A bar graph comparing the profit shares of A and B, showing A's bar at 2880 and B's bar at 1920.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Profit and Loss, Ratio and Proportion as background academic context rather than a clinical decision trigger.
This type of calculation is fundamental to understanding business partnerships and financial distributions, a key aspect of financial literacy.
Understanding how to divide amounts based on ratios is a practical skill used in various real-life scenarios, including resource allocation and budget management.
What if the profit was 75% instead of 60%? The total profit would be 75% of 8000 = 6000. A's share would then be (3/5) * 6000 = 3600.

How to Approach the Question

First, carefully read the question to identify all the given information: total investment (8000), profit percentage (60%), and the investment ratio (3:2).
The first step is to calculate the absolute value of the total profit. Multiply the total investment by the profit percentage.
Next, understand the ratio. A ratio of 3:2 means the total is divided into 3+2=5 equal parts.
Determine the fraction of the profit that belongs to person A. In this case, it's 3 out of 5 parts, or 3/5.
Multiply the total profit by this fraction to find A's share.
Finally, check your answer against the options and quickly consider if the other options represent common errors (like calculating total profit or B's share) to confirm your method.

Concept Tested & Keywords

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Practise the full NORCET 7 Prelims -2024

Attempt every question from this paper in a timed mock, then review the full solution for each one.