Aptitude - Partnership - Discussion

Can somebody explain this?

Profit of 1 Year is to be calculated.
now
Let the initial investments of A and B be 3x and 5x.
so for 1 year investment of a (3x * 12) and b (5x * 12)
c joins after 6 months , so c's investment for that year
(5x * 6(remaining months of that year))
then
A : B : C = (3x x 12) : (5x x 12) : (5x x 6) = 36 : 60 : 30 = 6 : 10 : 5.
solving this u get the ans.

hope i got it right...

Why (5x * 6(remaining months of that year)) is done ? if C invests equal to the A then it should be (3x * 6(remaining months of that year)).

Please correct me if I am wrong.

@Arijeet.

C has invested as equal to B's share.

So, C's share will be 5x *6.

5x = B's share and 6 is the remaining month of the year.

@Nikhil is right @Arjeet because C joins after 6 months. :-)

What if we consider discounting rate, then we can find equivalent present value (at the beginning of the year) for C's investment?

Following is explanation:

Given that, A and B had initial investment in the ratio of 3:5.

Let's assume that A's total investment is 3X and B's total investment is 5X.

Given that, profit needs to be calculated at the end of one year, i.e., 12 months.

=> A's total investment for 12 months is 3X*12/12 = 3X.

=> B's total investment for 12 months is 5X*12/12 = 5X.

=> C's total investment for 12 months is 5X*6/12 = 5X/2.

Though, C invested 5X for 6 months only, 5X/2 is equivalent investment for 12 months.

Profit should be distributed on basis of Investment ratio calculated for a period of 1 year, i.e 3.

A:B:C = 3X:5X:5X/2 = 6:10:5.

If A or B or C's investment be one-time, then X will be larger. If A or B or C's investment be recurring every month, then X will be smaller.

Thanks.

Why c has 5x? Please explain.

We know that,


Investment * Time = Profit

So,
Ratios of - A : B : C
Investment - 3 : 5 : 5
Time - 12 : 12 : 6
Profit - 36 : 60 : 30

So, I*T = P.

Profit Ratio = 6:10:5 (After taking 6 common).

@Dino.

But, it is said that C has joined with an "amount" equal to that of B, and not share. Thus, I took a common factor k and multiplied it to all the ratios to get the actual amount.

Then, found C (C's investment ratio) to be 10.

Simplifying the ratios, I obtained the ratio to be 3:5:5.