A starts the business with Rs.
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A starts the business with Rs. 7000 and after 5 months, B joins with A as his partner. After 1 year, the profit is divided in the ratio 2:3. What is B's contribution to the capital?
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Answer: B. B) 18000
A's equivalent capital = 7000 * 12 = 84000. B's equivalent capital for 7 months = 7B. Setting 84000 / (7B) = 2/3 gives 12000 / B = 2/3 => B = 18000.
Step-by-step Derivation:
Step 1: A's investment duration = 12 months. Total investment value = 7000 * 12 = 84000.
Step 2: B's investment duration = 12 - 5 = 7 months. Total investment value = 7 * B.
Step 3: Ratio of profits = 84000 / (7B) = 2 / 3.
Step 4: 12000 / B = 2 / 3 => 2B = 36000 => B = 18000.