Question:medium

Anil, Bobby and Chintu jointly invest in a business and agree to share the overall profit in proportion to their investments. Anil's share of investment is 70%. His share of profit decreases by ₹ 420 if the overall profit goes down from 18% to 15%. Chintu's share of profit increases by ₹ 80 if the overall profit goes up from 15% to 17%. The amount, in INR, invested by Bobby is

Updated On: Jan 15, 2026
  • 2400
  • 2200
  • 2000
  • 1800
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The Correct Option is C

Solution and Explanation

Anil's investment constitutes 70% of the total investment. When the overall profit rate decreases from 18% to 15%, Anil's profit share reduces by ₹420. Each of the three investors has contributed an equal amount, denoted as 'x'.

Step 1: Formulating the equation for Anil's profit share

The change in Anil's profit share is calculated as:

\[ 70\% \times \left(18\% \times x - 15\% \times x \right) = 420 \] This simplifies to: \[ 420 = 70\% \times 3\% \times x \] \[ 420 = 0.7 \times 0.03 \times x \] The value of \(x\) is determined as: \[ x = \frac{420}{0.7 \times 0.03} = 20,000 \]

Step 2: Determining Chintu's increase in profit share

When the profit rate escalates from 15% to 17%, Chintu's profit share rises by ₹80. Let \( c\% \) represent Chintu's profit share. The change can be expressed as:

\[ c\% \times 2\% \times 20,000 = 80 \] Simplifying this equation yields: \[ \frac{c}{100} \times 0.02 \times 20,000 = 80 \] \[ c \times 400 = 80 \quad \Rightarrow \quad c = 20 \]

Step 3: Calculating Bobby's investment share

Given that Chintu holds 20% of the investment, Bobby must hold the remaining 10%. Therefore, Bobby's investment is:

\[ 10\% \times 20,000 = 2,000 \]

Final Answer:

Bobby's investment amounts to ₹2,000, representing 10% of the total investment of ₹20,000.

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