Comprehension

Directions: Read the given information carefully and answer the following questions.

A and B invested in a business in the ratio 4 : 5. A invested for 4 months more than B. At the end of year, the total profit earned is Rs. 35000 out of which B earned Rs. 15000. 

What is the amount invested by A in the business?

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  1. Rs. 16000
  2. Rs. 20000
  3. Rs. 18000
  4. Rs. 22000
  5. Cannot be determined

Answer (Detailed Solution Below)

Option 5 : Cannot be determined
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Detailed Solution

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Let the amount invested by A and B be 4x and 5x respectively

Let B invested by ‘t’ months

Time of investment of A = t + 4

Profit ratio = 4x × (t + 4) : 5x × t = (4t + 16) : 5t

Now, B’s share:

5t/(4t + 16 + 5t) × 35000 = 15000

35t = 27t + 48

8t = 48

t = 6 months

Period of investment: A = 10 months, B = 6 months 

Amount invested by A = 4x

We cannot determine the value of ‘x’

∴ Amount invested by A cannot be determined.

Here many might mistake 'by the end of year' as one year and solve the question and get it wrong. Note that it is not written 'by the end of one year', since no numerical value of time is given, and with only the ratio given we can not reach a valid conclusion. 

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