Discussion :: Partnership
- A, B, and C enter into a partnership. A invests one-fourth of the capital for one-fourth of the time. B invests one-fifth of the capital for half of the time. C contributes the remaining capital for the whole time. How should they divide a profit of Rs 1140?
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Answer : Option C
Explanation :
Let capital is 1unit, and time is 1unit
Apply the formula to calculate the profit ratio
(C1 * T1): (C2 * T2): (C3 * T3)
(¼ * ¼): (1/5 * ½): ((1-(1/4 + 1/5))*1)
i.e., (1/16): (1/10): (1- (5+4)/20)
1/16: 1/10: 11/20
To calculate the investment ratio, take LCM of the denominators and multiply with each fraction.
LCM of 16, 10, and 20 is 80
Now, (80/16): (80/10): ((11*80)/20)
We get the investment ratio: 5:8:44
Total profit is 1140
Apply formula:
A's share = (A's ratio/ sum of all three ratios)* total profit
A's share = (5/57)* 1140 = 100
B's share = (8/57)*1140= 160
C's share = 1140 - (100+160) = 880
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