CAT 2021 Slot 2 QA Question 19: 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

Question

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

Accepted Answer

Let the total investment be $I$.

When the overall profit falls from 18% to 15%, the total profit falls by $3\%$ of $I$. Anil’s investment share is 70%, so his share of this fall is ₹ 420.
$0.70 	imes 0.03 	imes I = 420$
$0.021I=420$
$I=20000$

When the overall profit rises from 15% to 17%, the to