Ren and Martin started a company on 1 March 2019. The ratio of their investments was 5 : 4. Martin left the company after 15 months. In what ratio must the profit be divided at the end of 2 years?
Given:
Ratio of investment of Ren and Martin = 5:4
Martin left the company after 15 months
Solution:
Let the amount of investment of both Ren and Martin be 5x and 4x
Then Ren time in company = 24 months
And Martin time in company = 15 months
Ratio of share = = 2:1
The ratio between Ren and Martin must be divided in ratio 2:1 respectively
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