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A, B and C enter into a partnership. A invests $ 2400 for 4 years, B $ 2800 for 8 years and C $ 2000 for 10 years. They earn $ 1170. Find the share of each.
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- $ 420
- $ 540
- $ 108
- $ 216
Correct Option: D
Here , Profit = $ 1170
This is a case of compound partnership.
$ 2400 investment for 4 years earns as much as $ 2400 × 4 = $ 9600 in 1 year
Similarly, $ 2800 for 8 years is equivalent to $ 2800 × 8 = $ 22400 in 1 year
$ 2000 for 10 years is equivalent to $ 2000 × 10 = $ 20,000 in 1 year
The profit is, therefore, divided in the ratio $ 9600 : $ 22400 : $ 20000 or, 12 : 28 : 25
Sum of the ratios =12 + 28 + 25 = 65
| Share of each = $ | = $18 | 65 |
So, A’s share =12 × $ 18 = $ 216
B’s share =28 × $ 18 = $ 504
C’s share =25 × $ 18 = $ 450
