Correct option is C
Given:
- A's initial investment = ₹ 85,000
- B's initial investment = ₹ 42,500
- The profit ratio at the end of the year = 3:1 (A:B)
Formula Used:
The profit share is proportional to the investment and the time for which it is invested:
Profit Share = Investment × Time
Solution:
Let the time period for which B invested money be t months.
- A's investment = ₹ 85,000 for 12 months.
- B's investment = ₹ 42,500 for t months.
The ratio of the profits is:
The share of A and B will be proportional to the product of their investments and time. So:
1,020,000 = 3 × 42,500 × t
1,020,000 = 127,500 × t
t = = 8 months
B joined the business for 8 months .