A and B started a business with ₹12000 and ₹18000. B left after 4 months. Find their profit ratio after 1 year.
Show answer & explanation
Correct answer: A
Explanation
Given:
A's investment = 12,000 (12 months)
B's investment = 18,000 (4 months)
Formula:
Profit ratio = Investment × Time
A = 12,000 × 12 = 144,000
B = 18,000 × 4 = 72,000
Ratio = 144,000 : 72,000 = 2 : 1