BANK & INSURANCE (PARTNERSHIP) PART 1

Total Questions: 75

1. P and Q invested in a business in the ratio 4:7 respectively and for time periods in the ratio 21:16 respectively. If 10% of the total profit goes to charity and rest is distributed between P and Q according to their investments such that P's share is Rs 5400, then what is the total profit?

Correct Answer: (d) Rs 14000
Solution:

90% of the profit will be distributed in the ratio 4 × 21 : 7 × 16 = 3:4
Let the profit be Rs p

So, (3/7) × (90p/100) = 5400

p = 14000

2. P started investment. The initial investment of P is Rs.15000 and the initial investment of Q is Rs.8000. The ratio of profit made by P and profit made by Q is 9:4. After how many months P left the partnership? Q invests after nine months. The total time is 24 months.

Correct Answer: (d) 18 months
Solution:

Initial investment of P = Rs.15000
Initial investment Q = Rs.8000

Time for which Q invest money = 24-9 = 15 months

Let P invest for X months

Ratio of profit of P and profit of Q = 9:4

(15000×X)/(8000×15) = 9/4

X / 8 = 9 / 4

X = 18 months

P leave the partnership after 18 months.

3. P and Q started a business by investing Rs.5000 and Rs.7500 respectively. After four months Q withdraw 20% of his amount. After one year they made a profit of Rs.7935. Calculate the profit of P.

Correct Answer: (b) Rs.3450
Solution:

Amount invested by P = Rs.5000

Time for which P invested money = 12 months

Amount invested by Q = Rs.7500

Q invest 7500 for = 4 months

Amount invested by Q after four months = 7500 × 0.8

= 6000

Q invest Rs.6000 for = 8 months

(Profit made by P) / (profit made by Q)
= (5000 × 12) / (7500 × 4 + 6000 × 8)

= 60,000 / (30,000 + 48,000)

= 60,000 / 78,000

= 20 / 26 = 10 / 13

Profit made by P = (10/23) × 7935

= 10 × 345

= Rs.3450

4. Puneet and Sumit invest in a business. Puneet invested Rs 4200 and after 4 months he withdrew 14.28% from its investment and Sumit invested Rs 4500 and after 6 months added 20% in its initial investment. Find the profit share of Puneet after one year if the total profit earned is Rs 3500.

Correct Answer: (b) Rs 1520
Solution:

Profit share of Puneet and Sumit

= (4200 × 4 + 3600 × 8) : (4500 × 6 + 5400 × 6)

= (42 × 4 + 36 × 8) : (45 × 6 + 54 × 6)

= 76 : 99

Total profit = Rs 3500

Profit share of Puneet

= (3500 × 76) / 175

= 20 × 76

= Rs 1520

5. Suman and Harish invested Rs.10000 and Rs.20000 respectively. After one year, Suman and Harish increased their investment by 50% and 75% respectively. After one more year, total profit made is Rs.32000. Find the profit of Suman?

Correct Answer: (a) Rs.10000
Solution:

Profit ratio of Suman and Harish

Suman : Harish

(10000×1+(3/2)×10000×1):(20000×1+20000×(7/4)×1)

(10000+15000):(20000+35000)

25000 : 55000

5 : 11

Profit of Suman = (5/16) × 32000 = Rs.10000

6. Varun starts a business with a capital of Rs. 42000. After 3 months, if Tarun joins Varun then how much he should invest so that he can get half of the total profit of one year?

Correct Answer: (e) None of these
Solution:

Let the investment of Tarun = t then

42000 × 12 : t × 9 = 1 : 1

Therefore, 42000 × 12 = t × 9

By solving, t = Rs. 56000

7. A invested Rs.300 for 8 months and B invested Rs.400 for 4 months. Total profit earned by them is Rs.500. B invested his profit at 10% rate of interest per annum compounded annually for 2 years. Find difference between his investment and interest received by him.

Correct Answer: (a) Rs.358
Solution:

A : B

300 × 8 : 400 × 4

3 : 2

Profit of B = 500/5 × 2 = Rs.200

Cumulative interest rate = 10 + 10 + 10 × 10/100

= 21%

Interest received by him = 200 × 21 × 1 /100

= Rs.42

Required difference = 400 − 42 = Rs.358.

8. . K started a business. He left at the end of eight months while P took over his business at the same time. The ratio of their capital invested was 3:5 respectively. What was the respective ratio of their shares of profit at the end of the year?

Correct Answer: (a) 5:3
Solution:

Ratio of their shares of profit = ratio of their investments

Ratio of the investments by K and P = (3 × 8) : (5 × 4)

= 6 : 5

9. . P and Q both invested in a business for an equal period of time such that P invested Rs.500. After 6 months he doubled his investment. Q invested an amount double of the initial investment of P for 6 months. After that increased his investment by 100%. P got total Rs.200 profit after 1 year. Q invested his profit at 30% Simple interest for 1 year. Find interest received by him.

Correct Answer: (c) Rs.120
Solution:

P : Q

500 × 6 + 1000 × 6 : 1000 × 6 + 2000 × 6

1 : 2

Profit of Q = 200 × 2 = Rs.400

Interest received by Q = 400 × 30 × 1 /100 = Rs.120

10. X invested Rs.1000 to start a business. Y joined him with twice of the investment of X. Ratio of profit for which they invested is 1:4. X invested for 6 months. Find the time period for which Y invested?

Correct Answer: (a) 12 months
Solution:

Let Y invested for x months.

X : Y

1000 × 6 : 2000 × x

3 : x

Acc. to the question,

3/x = 1/4

x = 12 months