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 A and B start a business Rs.75000 and RS.12000. In what ratio of profit earned after 2 years be divided between A and B ?
  • a)
    20:11
  • b)
    24:18
  • c)
    12:23
  • d)
    25:4
  • e)
    None of these
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
A and B start a business Rs.75000 and RS.12000. In what ratio of profi...
Answer -D) 25: 4 Explanation :75000 : 12000 = 75 : 12 = 25 : 4
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A and B start a business Rs.75000 and RS.12000. In what ratio of profi...
Given, A and B invest Rs.75000 and Rs.12000 respectively in a business.

Let the profit earned after 2 years be x.

The ratio in which profit is divided between A and B is given by:

Ratio of profit = (Investment by A * Time) : (Investment by B * Time)

Ratio of profit = (75000 * 2) : (12000 * 2) = 150000 : 24000

Simplifying the above ratio by dividing both the numbers by 24000, we get:

Ratio of profit = 25 : 4

Therefore, the profit earned after 2 years will be divided in the ratio of 25:4 between A and B.
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