A and B started a business investing Rs.80000 and Rs.20000 respectively.In what ratio the profit earned after 3 years be divided between A and B respectively?4:56:128:612:3
Question
A and B started a business investing Rs.80000 and Rs.20000 respectively.In what ratio the profit earned after 3 years be divided between A and B respectively?4:56:128:612:3
Solution
The profit ratio is determined by the investment ratio and the time period for which the investment was made. In this case, both A and B invested for the same time period i.e., 3 years. So, the profit ratio will be the same as the investment ratio.
The investment made by A is Rs. 80000 and by B is Rs. 20000.
So, the investment ratio of A to B is 80000:20000.
This simplifies to 4:1.
Therefore, the profit earned after 3 years will be divided between A and B in the ratio 4:1.
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