Ravi and Kavi invest Rs. 8,000 and Rs. 72,000 respectively in a business. What is the ratio of their profits at the end of one year?
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A2 : 9
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B5 : 9
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C7 : 9
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D1 : 9
Answer
Correct Answer: 1 : 9
Explanation
Introduction / Context: With equal time periods, profit ratio equals capital ratio. We simply reduce 8,000 : 72,000 to the simplest form to find the profit ratio between Ravi and Kavi.
Given Data / Assumptions:
- Ravi invests Rs. 8,000.
- Kavi invests Rs. 72,000.
- Time period is the same for both partners.
Concept / Approach: Profit ratio = capital ratio when time is equal. Reduce 8,000 : 72,000 by their greatest common divisor.
Step-by-Step Solution: 8,000 : 72,000 = 8 : 72 = 1 : 9. Thus, Ravi : Kavi = 1 : 9.
Verification / Alternative check: If total profit were P, Ravi gets P/10 and Kavi gets 9P/10, maintaining the 1 : 9 ratio.
Why Other Options Are Wrong: 2 : 9, 5 : 9, and 7 : 9 do not reduce from 8,000 : 72,000.
Common Pitfalls: Forgetting to reduce the ratio completely or mistakenly adding capitals instead of comparing them.
Final Answer: 1 : 9