Suresh started a business by investing a certain amount of money. Rakesh joined him after four months by investing Rs.50000. If after one year Suresh and Rakesh share the profit in the ratio of 10:8, how much capital did Suresh invest? |
42000 41666.7 42666.7 47000 |
41666.7 |
In a business partnership, the profit is shared in the ratio of the product of the capital invested and the time period for which it was invested: $\text{Profit Ratio} = (\text{Investment}_1 \times \text{Time}_1) : (\text{Investment}_2 \times \text{Time}_2)$ Let Suresh's capital investment be $X$. Step 1: Identify the time periods and investments
Step 2: Set up the ratio equation $\frac{\text{Suresh's Profit}}{\text{Rakesh's Profit}} = \frac{X \times 12}{50000 \times 8}$ Given that the profit ratio is $10:8$: $\frac{10}{8} = \frac{12X}{400000}$ Step 3: Solve for $X$ Cross-multiplying to solve the equation: $12X \times 8 = 10 \times 400000$ $96X = 4000000$ $X = \frac{4000000}{96}$ $X \approx 41666.7$ |