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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

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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.

This problem has been solved

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