CAT 2021 Slot 2 · Quant · Question 8

CAT 2021 Slot 2 previous year question on Partnership, with the answer and a step-by-step solution.

PartnershipArithmeticMultiple choiceMedium
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 ₹, invested by Bobby is
  1. A
    2400
  2. B
    2200
  3. C
    2000
  4. D
    1800
Pick an option, then check.
Answer & solution

Answer: Option C

Let the total investment be T.

A profit of p\% means a total profit of \frac{p}{100}T,

and each partner takes his investment share of it.

Anil holds 70\%. Dropping the profit from 18\% to 15\% costs him 0.70\times 0.03T=0.021T, and this equals 420, so T=20000.

Let Chintu's share be f. Raising the profit from 15\% to 17\% gains him

f\times 0.02\times 20000=400f, and this equals 80, so f=0.2, that is 20\%.

Bobby therefore holds 100\%-70\%-20\%=10\%,

so he invested 0.10\times 20000=2000, that is ₹2000.

Take this paper as a timed test
Real exam timing, instant score, rank and topic-wise analysis.

Practice timed →