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Ratio, Proportion and Partnership
X and Y started a business with capitals Rs. 20,000 and Rs. 25,000 respectively. After a few months, Z joined them with a capital of Rs. 30,000. If Z's share in the annual profit of Rs. 50,000 is Rs. 14,000, then after how many months from the beginning did Z join?
Correct answer: D
Explanation and memory cue
Z's share of the profit is Rs. 14,000 out of Rs. 50,000, which is 14,000/50,000 = 0.28 or 28%. The capitals and times invested determine the profit share. Let Z join after x months. X and Y invested for 12 months, Z for (12 - x) months. The ratio of investments is 20000*12 : 25000*12 : 30000*(12 - x) = 240000 : 300000 : 30000(12 - x). The share of Z is 30000(12 - x) / (240000 + 300000 + 30000(12 - x)) = 0.28. Solving gives x = 4 months. So, Z joined after 4 months from the beginning.