Harry and Ron enter into a partnership for a year. Harry invests Rs. 6000, and Ron invests Rs. 8000. After 4 months, they admit Hermione, who invests Rs. 9000. If Ron withdraws his contribution after 6 months, how would Harry,Ron and Hermione share a profit of Rs 1000 at the end of the year?
Question
Harry and Ron enter into a partnership for a year. Harry invests Rs. 6000, and Ron invests Rs. 8000. After 4 months, they admit Hermione, who invests Rs. 9000. If Ron withdraws his contribution after 6 months, how would Harry,Ron and Hermione share a profit of Rs 1000 at the end of the year?
Solution
The profit in a partnership is divided according to the capital invested and the time for which the capital is invested.
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Calculate the capital-time product for each person:
- Harry's capital-time product is Rs. 6000 * 12 months = Rs. 72000.
- Ron's capital-time product is Rs. 8000 * 6 months = Rs. 48000.
- Hermione's capital-time product is Rs. 9000 * 8 months = Rs. 72000.
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Calculate the total capital-time product:
The total capital-time product is Rs. 72000 (Harry) + Rs. 48000 (Ron) + Rs. 72000 (Hermione) = Rs. 192000.
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Calculate each person's share of the profit:
- Harry's share is (72000 / 192000) * Rs. 1000 = Rs. 375.
- Ron's share is (48000 / 192000) * Rs. 1000 = Rs. 250.
- Hermione's share is (72000 / 192000) * Rs. 1000 = Rs. 375.
So, Harry and Hermione would each get Rs. 375, and Ron would get Rs. 250.
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