Previous Year Questions

Let Preeti's initial investment = Rs. a

Then, Madhu's initial investment = (100 + 20)% of a = Rs. 1.2a

Partnership period = 2 years = 24 months

Now, profit ratio, Preeti: Madhu = (a * 7 + (100 - 20)% of a * (24 - 7)): (1.2a * (24 - 7))

= 20.6: 20.4

= 103: 102

Total profit earned = Rs.9840

Therefore, difference between the share of Preeti and Madhu in profit

= 9840 * (103 - 102)/(103 + 102)

= Rs.48