Three partners invested in a business in the ratio 1:9:8. They invested their capitals for11 months, 6 months and 2 months, respectively. What was the ratio of their profits?
Given:
Investment ratios = 1 : 9 : 8
Time periods = 11 months, 6 months, 2 months
Concept Used:
Profit is distributed in the ratio of the product of capital invested and the time for which it is invested.
Formula Used:
Profit Ratio = Investment × Time
Solution:
Profit ratio = (1 × 11): (9 × 6) : (8 × 2)
= 11 : 54 : 16
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