A invest \(\frac{1}{8}\)th of the capital for \(\frac{1}{8}\)th of the time, B invest \(\frac{1}{2}\)nd of the capital for \(\frac{1}{2}\)nd of the time and C invest rest of the capital for whole the time. Find profit sharing ratio.
Answer & explanation
Correct answer: option 4
Let the capital = 8R and the time ratio = 8
A : B : C
Capital : 1 : 4 : 3
Time : 1 : 4 : 8
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Profit : 1 : 16 : 24 (Profit ratio = capital × time)