Given below are two quantities named A and B. Based on the given information you have to determine the relation between the two quantities. You should use the given data and your knowledge of Mathematics to choose between the possible answers. Quantity A: Akash starts a business with Rs. 85000 and Payal join him with Rs. 102000. If the profit at the end of a year is divided in the ratio 1 : 1, then after how many months did Payal join Akash? Quantity B: 7
Given below are two quantities named A and B. Based on the given information you have to determine the relation between the two quantities. You should use the given data and your knowledge of Mathematics to choose between the possible answers. Quantity A: Akash starts a business with Rs. 85000 and Payal join him with Rs. 102000. If the profit at the end of a year is divided in the ratio 1 : 1, then after how many months did Payal join Akash? Quantity B: 7 Correct Answer Quantity A < Quantity B
Quantity A:
Akash’s total capital investment = 85000 × 12 = 1020000
Let Payal joined Akash after ‘x’ months
⇒ Payal’s investment time = (12 – x)
⇒ Payal’s total capital investment = 102000 × (12 – x)
Now, Ratio of profits = Ratio of total capital investments
⇒ 1 ∶ 1 = 1020000 ∶
⇒ 102000(12 – x) = 1020000
⇒ 12 – x = 10
⇒ x = 12 – 10 = 2
∴ Payal joined after 2 months
Quantity B: 7
∴ Quantity A < Quantity B