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A and B started a business after investing Rs. 12,000 and Rs. 14,400 respectively. At the end of the year B gets 12% of the total profit as management fees and the rest amount is distributed between both the partners in the ratio of their investments. If total annual profit is Rs. 7,500, then find the difference between their profits.

Correct Answer: Rs. 1500

From the given data,

Ratio of capital = 12000 : 14400 = 5 : 6

Required Difference = 

6 - 56 + 5 88100 x 7500 + 12100 x 7500= 111 x 88 x 75  + 12 x 75= 600 + 900= 1500

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