Multiple choice

A and B have invested in a business for a year. A has invested Rs. 6000 more than B for 12 months. B has invested his capital for 4 months less than A. At the end of the investment tenure, the total profit earned was Rs. 4800. Find the ratio of the investment of A to that of B, if B receives Rs. 1600 less in the profit share.

  1. 7 : 5

  2. 4 : 3

  3. 5 : 9

  4. 2 : 1

  5. 1 : 2

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let B's investment be x and time be t. A's investment is x + 6000 and time is t + 4. Profit is proportional to investment times time. Setting up the ratio (A_inv * A_time) / (B_inv * B_time) = A_profit / B_profit, where A_profit = 4800 - 1600 = 3200 and B_profit = 1600. Solving for x and t leads to the ratio of investments.