Raman started a business with Rs 8,00,000 and is joined afterwards by Dev with Rs 12,00,000. After how many months did Dev join the business if the profit at the end of a year is dividend equally ?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 4 months
Raman's Investment = Rs. 8,00,000
Dev's Investment = Rs. 12,00,000
let Dev join after x months
The share of profit is proportional to investment × time
$\frac{\text{Raman's Profit}}{\text{Dev's Profit}}=\frac{8,00,000×12}{12,00,000×(12-x)}$
$⇒8,00,000×12=12,00,000×(12-x)$
$⇒96,00,000=12,00,000×(12-x)$
$⇒8=12-x$
$⇒x=4$ months