Multiple choice

Shawn started a business by investing Rs. 45,000. 6 months later Michael joined him with Rs. 30,000. What will be Michael's share in the profits if profit of Rs. 3200 was obtained at the end of the year?

  1. Rs. 800

  2. Rs. 600

  3. Rs. 1200

  4. Rs. 2000
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A Correct answer
Explanation

Investment ratio: Shawn (45000 * 12) : Michael (30000 * 6) = 540000 : 180000 = 3 : 1. Total profit = 3200. Michael's share = 1/(3+1) * 3200 = 800.

AI explanation

The profit ratio is the product of investment and time, calculated as (45000 * 12) : (30000 * 6), which simplifies to 540000 : 180000 or 3 : 1. Michael's share is 1 / (3 + 1) of the total profit of 3200, calculated as 3200 * 1 / 4. This gives Rs. 800.

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