Select the correct answerA starts a business with a capital of Rs. 85,000. B joins in the business with Rs.42500 after some time. For how much period does B join, if the profits at the end of the year are divided in the ratio of 3 : 1?Options7856
Question
Select the correct answerA starts a business with a capital of Rs. 85,000. B joins in the business with Rs.42500 after some time. For how much period does B join, if the profits at the end of the year are divided in the ratio of 3 : 1?Options7856
Solution
The problem is about the distribution of profits in a business partnership, which is usually proportional to the product of the capital invested and the time for which it is invested.
Let's denote: C_A = Capital invested by A = Rs. 85,000 C_B = Capital invested by B = Rs. 42,500 T_A = Time for which A's capital was invested = 1 year (since A started the business) T_B = Time for which B's capital was invested (this is what we need to find) P_A/P_B = Ratio of A's profit to B's profit = 3/1
According to the rule of partnership, (C_A * T_A) / (C_B * T_B) = P_A / P_B
Substituting the known values, we get: (85000 * 1) / (42500 * T_B) = 3 / 1
Solving this equation for T_B gives us: T_B = (85000 * 1) / (42500 * 3) = 2/3 years
So, B must have joined the business for 2/3 of a year, or approximately 8 months.
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