A's and B's shares in a business are in the ratio of 5:3. If A has invested Rs. 70000 for 12 months, for what period B has invested Rs. 60000?
Answer & explanation
Correct answer: option 1
In partnership, the profit share is proportional to Investment × Time.
Given:
- A : B's profit share = 5 : 3
- A invested ₹70,000 for 12 months
- B invested ₹60,000 for x months
So,
$\frac{70000 \times 12}{60000 \times x} = \frac{5}{3}$
Simplify:
$\frac{7 \times 12}{6x} = \frac{5}{3}$
$\frac{84}{6x} = \frac{5}{3}$
$\frac{14}{x} = \frac{5}{3}$
Cross-multiply:
$14 \times 3 = 5x$
$42 = 5x$
$x = \frac{42}{5} = 8.4 \text{ months}$