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?Options6578
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?Options6578
Solution 1
The profit share is directly proportional to the product of the invested capital and the time period for which it is invested.
Let's denote:
- the time period for which A's capital was invested as Ta (in months),
- the time period for which B's capital was invested as Tb (in months),
- A's capital as Ca,
- B's capital as Cb.
Given:
- Ta = 12 months (since A started the business and stayed for a year),
- Ca = Rs. 85,000,
- Cb = Rs. 42,500,
- The ratio of A's profit to B's profit = 3/1.
We can write the equation as follows:
(Ca * Ta) / (Cb * Tb) = 3/1
Substituting the given values into the equation:
(85000 * 12) / (42500 * Tb) = 3/1
Solving for Tb gives:
Tb = (85000 * 12) / (42500 * 3) = 8 months
So, B must have joined the business for 8 months.
Solution 2
To find out for how long B joins the business, we can use the concept of the ratio of investments and the ratio of profits.
Let's assume that B joins the business after x months.
The ratio of investments is given as 85,000 : 42,500, which simplifies to 17 : 8.
Since the profits are divided in the ratio of 3 : 1, we can set up the equation:
(17x) / (8(12 - x)) = 3/1
To solve this equation, we can cross-multiply:
3(8(12 - x)) = 1(17x)
Simplifying further:
24(12 - x) = 17x
Expanding:
288 - 24x = 17x
Bringing like terms together:
41x = 288
Dividing both sides by 41:
x = 288 / 41
Calculating this value:
x ≈ 7.024
Therefore, B joins the business for approximately 7 months.
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