Multiple choice

Directions: Study the following information carefully and answer the question that follows. Ram, Charan and Rohit are three partners who invested in a joint venture for one full year. The total initial sum invested in the joint venture was Rs. 62,000. After a year of investment, Ram, Charan and Rohit respectively invested 40%, 50% and 60% from their shares of profit in another joint venture for one more year. If the ratio of the investments for the second joint venture for Ram, Charan and Rohit respectively is 2 : 4 : 3, and Ram has invested in the first venture for 5 months, Charan for 8 months and Rohit for 10 months, find the ratio of their initial investments in the first joint venture.

  1. 2 : 1 : 2

  2. 2 : 2 : 1

  3. 1: 1: 2

  4. 1: 2 : 2

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

Profit ratio is proportional to (Investment * Time). Let initial investments be R, C, Ro. Profit shares are proportional to (R*5), (C*8), (Ro*10). The second investment is a percentage of these profits. Given the ratio of second investments (2:4:3), we can work backwards to find the ratio of initial investments.

AI explanation

The profit ratio of the first year equals the investment multiplied by time, so their profit ratio is 5R : 8C : 10H. Since the second year's investments are 40 percent, 50 percent and 60 percent of these respective profits, the second year ratio is 0.4 multiplied by 5R : 0.5 multiplied by 8C : 0.6 multiplied by 10H, which simplifies to 2R : 4C : 6H. We are given this ratio equals 2 : 4 : 3, meaning 2R equals 2, 4C equals 4, and 6H equals 3; this gives R equals 1, C equals 1, and H equals 0.5. The required ratio of their initial investments is therefore 1 : 1 : 0.5, which is 2 : 2 : 1.

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