Select the correct answerA and B invest in the ratio 3 : 5. After 6 months, C joins the business investing an amount equal to B’s at the end of the year what will be the ratio of their profits?Options9 : 10 : 513 : 5 : 26 : 10 : 51 : 5 : 5
Question
Select the correct answerA and B invest in the ratio 3 : 5. After 6 months, C joins the business investing an amount equal to B’s at the end of the year what will be the ratio of their profits?Options9 : 10 : 513 : 5 : 26 : 10 : 51 : 5 : 5
Solution
The answer to this question can be found by understanding how the profits are divided in a business partnership.
In a business partnership, the profits are divided based on the amount of capital invested and the duration for which the capital was invested.
Here, A and B invest in the ratio 3:5. This means that for every 3 units of capital that A invests, B invests 5 units.
After 6 months, C joins the business investing an amount equal to B’s. This means that C's investment is equal to B's, but the duration of C's investment is only half of the year, while A and B's investments were for the full year.
So, the ratio of their profits will be:
A's profit : B's profit : C's profit = (A's investment * 12 months) : (B's investment * 12 months) : (C's investment * 6 months) = (3 * 12) : (5 * 12) : (5 * 6) = 36 : 60 : 30 = 6 : 10 : 5
So, the correct answer is 6 : 10 : 5.
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