Updated profit-sharing ratio after increasing investments: Aarti, Vinita, and Kamla invest in the ratio 5 : 7 : 6 initially. Next year they increase investments by 26%, 20%, and 15% respectively. Find the ratio in which the second-year profit should be distributed.
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A21 : 28 : 23
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B23 : 28 : 21
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C28 : 23 : 21
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D35 : 41 : 7
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E25 : 35 : 30
Answer
Correct Answer: 21 : 28 : 23
Explanation
Introduction / Context: Profit in a year is proportional to the invested capital for that year. When investments change by given percentages, multiply each base part by (1 + percentage change) to get the effective parts for that year, then reduce to a clean ratio for distribution.
Given Data / Assumptions:
- Initial ratio: 5 : 7 : 6.
- Increases: Aarti +26%, Vinita +20%, Kamla +15%.
- Second-year profit ∝ updated capitals.
Concept / Approach: Multiply each initial part by the growth factor: 1.26, 1.20, 1.15 respectively, then convert to integers by scaling (e.g., multiply by 10) and simplify if possible.
Step-by-Step Solution:
Aarti: 5 * 1.26 = 6.30.Vinita: 7 * 1.20 = 8.40.Kamla: 6 * 1.15 = 6.90.Scale by 10 ⇒ 63 : 84 : 69 ⇒ divide by 3 ⇒ 21 : 28 : 23.Verification / Alternative check: Any common multiplier applied to 21 : 28 : 23 corresponds to the same proportional distribution; thus this ratio uniquely represents the second-year split.
Why Other Options Are Wrong: Other options do not preserve the precise 1.26, 1.20, and 1.15 factors applied to 5 : 7 : 6.
Common Pitfalls: Adding percentage points directly to the ratio numbers instead of multiplying by growth factors; failing to simplify properly.
Final Answer: 21 : 28 : 23