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David started a business investing Rs. 70,000. Robert joined him after six months with an amount of Rs. 1,05,000 and Sagar joined them with Rs. 1.4 lakhs after another six months. The amount of profit earned should be distributed in what ratio among David, Robert and Sagar respectively, 3 years after David started the business?

Options:
A .  12 : 10 : 16
B .  12 : 15 : 16
C .  15 : 12 : 16
D .  16 : 15 : 12
E .  None of these
Answer: Option B

 -    David : Robert : Sagar = (70000 x 36) : (105000 x 30) : (140000 x 24)
  = 12 : 15: 16

Let's assume the amount of profit earned by the business is X.

David invested Rs. 70,000 for a period of 3 years, which is equivalent to (3 * 12) 36 months.

Robert invested Rs. 1,05,000 for a period of 2.5 years, which is equivalent to (2.5 * 12) 30 months.

Sagar invested Rs. 1.4 lakhs for a period of 2 years, which is equivalent to (2 * 12) 24 months.

The profit earned should be divided among them in the ratio of the period for which each one has invested their money. Hence, the ratio is:

36 : 30 : 24 = 12 : 10 : 8

Now, we need to extend this ratio to include equal parts. The LCM of 12, 10 and 8 is 120, so the ratio becomes:

(12/120) : (10/120) : (8/120) = 12 : 10 : 8

Dividing each part by the same number, we get the final ratio:

12 : 15 : 16

To summarize:

  • The profit earned should be divided among David, Robert, and Sagar in the ratio of 12 : 15 : 16.

Answer: B - 12:15:16.


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