and invest and respectively in a business. They agree to share profits in the ratio of their investments. If the business earns a profit of at the end of months, what is 's share of the profit?
- A
- B
- C
- D
Solution & Step-by-step Explanation
The profit sharing ratio in a partnership business depends on the ratio of the investments made by the partners when the time period is same for both.
Ratio of investments of and :
Total profit earned at the end of months =
Sum of the ratio terms =
Now, calculate 's share of the profit:
Ratio of investments of and :
Total profit earned at the end of months =
Sum of the ratio terms =
Now, calculate 's share of the profit: