A and B invested Rs. 10,000 each to start a business. A invested his money for eight months and B invested his money for the whole year. At end of the year, if the profit was Rs. 1,000, then what was A’s share? (in Rs.)
Solution
A and B invest same amount of money for the different time periods.
$\therefore$ The profits are shared in the ratio of respective time periods.
The ratio is 8 : 12 i.e., 2 : 3
$\therefore$ A’s share is $\frac {2}{(2+3)}$ i.e.,$\frac {2}{5}$ of the total profit which is
$\frac {2}{5}\times 1,000 = Rs.400$