Multiple choice

Pooja starts a business with Rs. 15,000. Priyanka joins in the business after 4 months with Rs. 20,000. What is the ratio in which they should share the profit at the end of the year?

  1. 8 : 15

  2. 5 : 18

  3. 18 : 5

  4. 9 : 8

  5. 8 : 9
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Pooja's investment is 15000 * 12 months = 180000. Priyanka's investment is 20000 * 8 months = 160000. The ratio is 180000 : 160000 = 18 : 16 = 9 : 8.

AI explanation

Using the standard partnership formula, the profit ratio is the product of the capital invested and the time period. Therefore, Pooja's ratio is 15000 * 12 = 180000, and Priyanka's ratio is 20000 * 8 = 160000. The ratio of their profits is 180000 : 160000, which simplifies to 9 : 8. The share of profit at the end of the year is in the ratio 9 : 8.

Keep practicing — related questions