Question
Kevin and Ben started a business with initial
investments in the ratio of 4:5. After six months, Kevin increased his investment by 25%, and Ben increased his investment by 20%. What will be the ratio of their annual profit shares, with respect to Ben and Kevin?Solution
Let the initial investment of Kevin and Ben be Rs. '4y' and Rs. '5y', respectively Increased investment of Kevin = 4y X 1.25 = Rs. '5y' Increased investment of Ben = 5y X 1.2 = Rs. '6y' So, respective ratio of annual profit shares of Ben and Kevin = (5y X 6 + 6y X 6):(4y X 6 + 5y X 6) = 11y:9y = 11:9
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