Question

Kamal and Dinesh invested in a business in the ratio of 5 : 7 respectively. After four months, Manohar entered the business with an investment of capital equal to that of Dinesh. What will be the ratio of their profits at the end of the year?
1. 15 : 12 : 14
2. 15 : 12 : 7
3. 1 : 2 : 3
4. 15 : 21 : 14

Answer 1

Correct Answer - Option 4 : 15 : 21 : 14

Given:

Ratio of investment of Kamal and Dinesh = 5 : 7

Time after which Manohar invested = 4 months

Formula Used:

Profit = Investment × Time

Calculations:

Let the profits of Kamal, Dinesh and Manohar at the ned of year be x, y and z respectively.

Ratio of investment of Kamal and Dinesh = 5 : 7

Capital of Manohohar = Capital of Dinesh

⇒ Ratio of investment of Kamal, Dinesh and Manohar = 5 : 7 : 7

Now, Profit = Investment × Time

⇒ x : y : z = 5 × 12 : 7 × 12 : 7 × (12 – 4)

⇒ x : y : z = 60 : 84 : 56

⇒  x : y : z = 15 : 21 : 14

∴ The ratio of their profits at the end of the year is 15 : 21 : 14.