M, N and P invest equally in a business.M leaves after 8 months whereas N leaves after just 5 months.Only P remains for a year.What will be ratio of profits of M, N and P respectively, if M invests Rs.216,800?8 : 5 : 128 : 6 : 124 : 7 : 15 : 7 : 3
Question
M, N and P invest equally in a business.M leaves after 8 months whereas N leaves after just 5 months.Only P remains for a year.What will be ratio of profits of M, N and P respectively, if M invests Rs.216,800?8 : 5 : 128 : 6 : 124 : 7 : 15 : 7 : 3
Solution
The profit share of a partner in a business is directly proportional to the product of the investment amount and the time period for which the investment is made.
Given that M, N and P invest equally in a business, the investment amounts are the same. Therefore, the ratio of their profits will be the same as the ratio of the time periods for which they invested.
M stays for 8 months, N stays for 5 months, and P stays for 12 months. Therefore, the ratio of their profits will be 8:5:12.
The question also mentions that M invests Rs.216,800. This information is not needed to calculate the ratio of their profits, since we know that all three invest the same amount.
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