starts a business with an investment of . Four months later, joins by investing . They partner for an entire year. What is the ratio of 's profit to 's profit at the end of the year?
- A
- B
- C
- D
Solution & Step-by-step Explanation
In a partnership business, profit shares are divided in proportion to the product of investment capital and investment duration ().
* For :
* Investment =
* Time duration = (entire year)
* Investment product equivalent =
* For :
* Investment =
* Time duration =
* Investment product equivalent =
Now compute the profit ratio of to :
Simplifying by dividing by :
* For :
* Investment =
* Time duration = (entire year)
* Investment product equivalent =
* For :
* Investment =
* Time duration =
* Investment product equivalent =
Now compute the profit ratio of to :
Simplifying by dividing by :