Practice mode Partnership

The capitals of A, B and C are in the ratio 2 : 3 : 4 and their profits are in the ratio 1 : 2 : 3. What is the ratio of their investment periods?

Correct answer A. 6 : 8 : 9

Explanation

Profit = capital × time, so time ∝ profit/capital = 1/2 : 2/3 : 3/4. Multiplying each term by 12 gives 6 : 8 : 9.

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