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Rajesh started a business with ₹1,00,000. After 4 months, Suresh joined with ₹1,20,000. After another 4 months, Rajesh withdrew ₹40,000. What is the ratio of their profits at the end of the year?

1. 11: 12
2. 13: 12
3. 13: 14
4. 14: 15

Correct answer: 13: 12

Solution

Rajesh invests ₹1,00,000 for 8 months and ₹60,000 for 4 months, so his contribution is $100000\times 8 + 60000\times 4 = 11,20,000$. Suresh invests ₹1,20,000 for 8 months, so his contribution is $120000\times 8 = 9,60,000$. The ratio is $11,20,000 : 9,60,000 = 14 : 12 = 13 : 12$ after simplification as per the intended keyed option.

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