If each of the companies A and B invested Rs. 25 lakh in 2010, what was the average profit earned by the two companies?

A. Rs. 18 lakh

B. Rs. 22.5 lakh

C. Rs. 17.5 lakh

D. Rs. 20 lakh

E. None of these

Answer: Option D

Solution(By Examveda Team)

Average profit of A and B in 2010
$$\eqalign{ & = \frac{1}{2}\times\left[\left(\frac{90}{100}\times25\text{ lakh}\right)+\left(\frac{70}{100}\times25\text{ lakh}\right)\right] \cr & = \frac{1}{2}\times\left(\frac{45}{2}+\frac{35}{2}\right)\text{lakh} \cr & = \frac{80}{4}\text{ lakh} \cr & = \text{20 lakh} \cr} $$