Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A, B, C shared the profit in the ratio 7 : 6 : 4. They partnered for 8 months, 12 months and 4 months respectively. What was ratio of their investments?

Options:

8 : 4 : 7

8 : 7 : 4

7 : 4 : 8

4 : 7 : 8

Correct Answer:

7 : 4 : 8

Explanation:

The correct answer is Option (3) → 7 : 4 : 8

$\text{Profit ratio} = 7 : 6 : 4$

$\text{Investment} \times \text{Time} \propto \text{Profit}$

$A : B : C = \frac{7}{8} : \frac{6}{12} : \frac{4}{4}$

$= \frac{7}{8} : \frac{1}{2} : 1$

$= \frac{7}{8} : \frac{4}{8} : \frac{8}{8}$

$= 7 : 4 : 8$

The ratio of their investments is $7 : 4 : 8$.