Question

A began a business with Rs. 75,000. B joins after some time with Rs. 37,500. After how many months did B join if the profits are shared in the ratio of 3 : 1 at the end of the year?
1. 4
2. 5
3. 6
4. 7

Answer 1

Correct Answer - Option 1 : 4

Given:

A begin the business with Rs.75000

B joined the business with Rs.37500

After one year their profit ratios are 3 ∶ 1

Formula Used:

(A₁ × T₁) : (A₂ × T₂) =  P₁ : P₂

A →  Amount Invested 

T → Time period of investment

P  → Profit ratio

Calculation:

Let ‘X’ be the total months B worked with A

substituting the values in the formula

⇒ (75000 × 12) ∶ (37500 × X) = 3 : 1

⇒ X = 8

 B joined after (12 – 8) = 4 months 

∴ After 4 months B joins  A