A and B start a business with capitals of ₹20,000 and ₹45,000, respectively. If the profit is divided in the ratio 2:3, find the ratio of the time periods of A and B's investments.
Show answer & explanation
Correct answer: B
Explanation
Given:
A's Capital = 20,000, B's Capital = 45,000
Profit Ratio = 2 : 3
A : B = (20,000 × t₁) : (45,000 × t₂) = 2 : 3
(20,000 t₁) / (45,000 t₂) = 2/3
(20 t₁) / (45 t₂) = 2/3
(4 t₁) / (9 t₂) = 2/3
12 t₁ = 18 t₂
2 t₁ = 3 t₂
t₁ : t₂ = 3 : 2