By Mansi Yadav

Verified by Ajay Kumar

X, Y, and Z are three partners whose profit-sharing ratio is 5:7:8. Had they invested their capital for 14 months, 8 months, and 7 months, respectively, what would their initial capital investment ratio be?

  1. 35 : 28 : 24

  2. 7 : 5 : 4

  3. 20 : 49 : 64

  4. 5 : 7 : 8

Answer: C

Solution

Solution: Profit is proportional to capital × time. Therefore, the capital ratio is \(\frac{5}{14}:\frac{7}{8}:\frac{8}{7}\). Multiplying each term by 56 gives \(20:49:64\). Trick: Divide each profit share by the corresponding investment period, then simplify the ratio.

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