The ratio of the profit of P and Q is 5 : 8. What is their investment ratio, if their investment time period ratio is 3 : 5?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 25 : 24
Explanation:
The ratio of profits for P and Q = 5 : 8
The ratio of investment period for P and Q = 3 : 5
Profit = Investment × period
Let the profits of P and Q be 5x and 8x.
Let the investment period of P and Q be 3y and 5y respectively.
Investment for P = 5x/3y
Investment for Q = 8x/5y
Investment ratio = (5x/3y)/(8x/5y) = 25 : 24
Hence the ratio of investment is 25 : 24.