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Question

In a business, A, B and C had invested in the ratio of 2 : 3 : 5, but they all earned the same amount of profit at the end. If the profit is proportional to the amount as well as the duration of the investment, what will be the ratio of duration of their investments ?

The correct answer is
15 : 10 : 6

To solve this problem, we need to determine the ratio of the duration of A, B, and C's investments given that their profit sharing ratio is the same. The relationship between their investment amounts, durations, and the profits earned forms the basis of our solution.

Given:

  • The ratio of investments by A, B, and C is \(2 : 3 : 5\).
  • The profits earned by A, B, and C are the same.
  • Profit is proportional to the product of the amount and the duration of the investment.

 

Since the profits are the same, the product of investment and duration for A, B, and C must be equal. Let's denote the duration of A, B, and C's investments as \(x\), \(y\), and \(z\) respectively.

From the profit condition:

\(2x = 3y = 5z\)

Now, express each equality in terms of a constant \(k\):

  • \(2x = k\) implies \(x = \frac{k}{2}\)
  • \(3y = k\) implies \(y = \frac{k}{3}\)
  • \(5z = k\) implies \(z = \frac{k}{5}\)

Hence, the ratio of the durations of their investments is:

\(x : y : z = \frac{k}{2} : \frac{k}{3} : \frac{k}{5}\)

To simplify, find a common denominator for the fractions, which is 30 in this case:

  • \(\frac{k}{2} = \frac{15k}{30}\)
  • \(\frac{k}{3} = \frac{10k}{30}\)
  • \(\frac{k}{5} = \frac{6k}{30}\)

Therefore, the ratio of the durations of their investments is:

\(15 : 10 : 6\)

The correct answer is thus, the ratio of the duration of their investments is 15 : 10 : 6.

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Important Questions from Partnership

  1. A, B, C invest Rs. 20000, Rs. 30000, Rs. 40000 in a business. After one year, A withdrew his money but B and C continued for one more year. If the net profit after 2 years be Rs. 32000, then A’s share in the profit is:

  2. Adesh and Bhadresh are partners sharing profits and losses in the ratio of 3 ∶ 2. Chandresh is admitted for 20% of share in profits out of which half of the share was gifted by Adesh and remaining was acquired by Chandresh from Adesh and Bhadresh in equal proportion. What would be new profit-sharing ratio?

  3. Mathur started a business by investing R6,76,000 as capital. After 4 months, Goyal joined the business by investing a capital of Rs. 5,07,000. A total of Rs. 2,60,000 including 25% of the total profit was given to Goyal for conducting business at the end of the year. How much profit Mathur will get?

  4. Mannu and Bhanu are partners. Bhanu wants to admit his son Channu into business. Can Channu become the partner of the firm?

  5. L, S and D are partners sharing profits in the ratio of \(\frac{2}{5},\frac{3}{7}\) and \(\frac{3}{10}\). If S retires from the firm, what will be the gain ratio of L

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