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A and B run a joint venture in which the...

A and B run a joint venture in which the profit earned by A and B are in the ratio 28 : 15 . A invest his share at the start of the year and B joins in after 9 months of the same year. What is the ratio of their initial investment respectively ?

A

`7 : 15`

B

`8 : 13`

C

`5:17`

D

`15:7`

Text Solution

AI Generated Solution

The correct Answer is:
To find the ratio of the initial investments of A and B in their joint venture, we can follow these steps: ### Step 1: Understand the Profit Sharing Ratio The profit earned by A and B is given in the ratio of 28:15. This means that for every 28 parts of profit A receives, B receives 15 parts. ### Step 2: Determine the Time of Investment - A invests his share at the start of the year, so A's investment is for 12 months. - B joins after 9 months, which means B's investment is for the remaining 3 months of the year (12 - 9 = 3). ### Step 3: Set Up the Equation for Profit Sharing The profit sharing can be expressed in terms of their investments and the time they invested: \[ \frac{P_A}{P_B} = \frac{I_A \times T_A}{I_B \times T_B} \] Where: - \(P_A\) and \(P_B\) are the profits of A and B respectively. - \(I_A\) and \(I_B\) are the investments of A and B respectively. - \(T_A\) and \(T_B\) are the time periods for which A and B invested. ### Step 4: Substitute Known Values From the problem, we know: - \(P_A/P_B = 28/15\) - \(T_A = 12\) months (for A) - \(T_B = 3\) months (for B) Substituting these values into the equation gives: \[ \frac{28}{15} = \frac{I_A \times 12}{I_B \times 3} \] ### Step 5: Simplify the Equation Cross-multiplying gives: \[ 28 \times (I_B \times 3) = 15 \times (I_A \times 12) \] This simplifies to: \[ 84 I_B = 180 I_A \] ### Step 6: Rearrange to Find the Ratio of Investments Rearranging the equation gives: \[ \frac{I_A}{I_B} = \frac{84}{180} \] Now, simplifying \( \frac{84}{180} \): \[ \frac{I_A}{I_B} = \frac{7}{15} \] ### Step 7: State the Ratio of Investments Thus, the ratio of the initial investments of A and B is: \[ I_A : I_B = 7 : 15 \] ### Final Answer The ratio of their initial investments respectively is **7:15**. ---
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