Multiple choice

A, B and C enter into a partnership. A initially invests Rs. 25 lakh and adds another Rs. 10 lakh after one year. B initially invests Rs. 35 lakh and withdraws Rs. 10 lakh after 2 years. C invests Rs. 30 lakh. In what ratio should the profit be divided at the end of 3 years?

  1. 10 : 10 : 9

  2. 20 : 20 : 19

  3. 20 : 19 : 18

  4. 19 : 19 : 18

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A: 25*1 + 35*2 = 95. B: 35*2 + 25*1 = 95. C: 30*3 = 90. Ratio 95:95:90 = 19:19:18.

AI explanation

To find the profit ratio over a period of 3 years, multiply each partner's investment by its holding period in years to find the equivalent capital months. A's total effective investment is (25 lakh times 1 year) plus (35 lakh times 2 years) to equal 95 lakh-years. B's total effective investment is (35 lakh times 2 years) plus (25 lakh times 1 year) to equal 95 lakh-years. C's total effective investment is 30 lakh times 3 years to equal 90 lakh-years. The profit ratio is 95 to 95 to 90, which simplifies to 19 to 19 to 18.

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