A, B and C invested capitals in the ratio 3 : 5 : 9, the timing of their investments being in the ratio…
The profits are distributed in the ratio 2 : 5 : 3. Profit shares are proportional to capital multiplied by investment time, giving (3 × 2) : (5 × 3) : (9 × 1) = 6 : 15 : 9…
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A, B and C invested capitals in the ratio 3 : 5 : 9, the timing of their investments being in the ratio 2 : 3 : 1. In what ratio would their profits be distributed?
Answer and explanation
Correct answer A
The profits are distributed in the ratio 2 : 5 : 3. Profit shares are proportional to capital multiplied by investment time, giving (3 × 2) : (5 × 3) : (9 × 1) = 6 : 15 : 9 = 2 : 5 : 3.
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