A and B started a business with Rs. 15000 and Rs. 30000 respectively. If A and B share profit in the ratio of 1 : 5 respectively, then what is the ratio of the time period of investment for A and B respectively?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 2 : 5.
Concept used:
Profit of A : Profit of B = (Investment of A × Time of A) : (Investment of B × Time of B)
Calculations:
Let the time of investment of A and B be X and Y respectively
The part of A's profit = 15000 × X
The part of B's profit = 30000 × Y
According to the question;
⇒ (15000 × X)/(30000 × Y) = 1/5
⇒ X/2Y = 1/5
⇒ X : Y = 2 : 5
Hence, the ratio of the time period of investment for A and B is 2 : 5.