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A, B and C started a business by investing Rs. 20000, Rs. 30000 and Rs. 10000 respectively. After 4 months, A and B invested Rs. 10000 each, while C invested Rs. 30000. What is the ratio of their profit shares at the end of the year?

A, B and C started a business by investing Rs. 20000, Rs. 30000 and Rs. 10000 respectively. After 4 months, A and B invested Rs. 10000 each, while C invested Rs. 30000. What is the ratio of their profit shares at the end of the year? Correct Answer 8 ∶ 11 ∶ 9

A’s total investment = (20000 × 4) + (20000 + 10000) × 8 = 80000 + 240000 = 320000

B’s total investment = (30000 × 4) + (30000 + 10000) × 8 = 120000 + 320000 = 440000

C’s total investment = (10000 × 4) + (10000 + 30000) × 8 = 40000 + 320000 = 360000

∵ Ratio of their profit shares = Ratio of their investments

∴ Ratio of their profit shares = 320000 ∶ 440000 ∶ 360000 = 8 ∶ 11 ∶ 9

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