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A started the business with an investment of ₹36,000. B and C joined him after 3 months and 6 months, respectively. The profit is divided in the ratio 2:3:5 at the end of the year. Find the difference between the investments made by B and C in the business.
- ₹72,000
- ₹108,000
- ₹81,000
- ₹120,000
Correct answer: ₹108,000
Solution
In partnership, profit is divided according to capital multiplied by time. Since A invested ₹36,000 for 12 months, B for 9 months, and C for 6 months, their time-weighted capitals are in the ratio 2:3:5. Solving gives B = ₹54,000 and C = ₹162,000, so the difference is ₹108,000.
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