The ratio of the profits of P and Q are 5 : 8. What is their investment ratio if their investment time period ratio is 4 : 5?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 25 : 32.
Profit = Investment × Time
Let investment ratio = P : Q = x : y
Time ratio = 4 : 5
Profit ratio = 5 : 8
So, x × 4 : y × 5 = 5 : 8
⇒ 4x/5y = 5/8
⇒ x/y = 5/8 × 5/4 = 25/32
Investment ratio = 25 : 32