Question

The capital invested by A is triple the capital invested by B. The capital invested by B is four times the capital invested by C. If the investment period is same for all A, B and C, then the ratio of their profit split is ______.

• A. 12 : 4 : 1
• B. 1 : 4 : 12
• C. 4 : 1 : 12
• D. 11 : 12 : 5

Answer 1

The correct option is A

12 : 4 : 1

Let the capital invested by C be ₹ z.

Then, the capital invested by B
= ₹ 4z

Capital invested by A = ₹ $(3\times (4z\left)\right)$
= ₹ 12z

The ratio of investment made by A, B and C
= 12z : 4z : z = 12 : 4 : 1

Since, the investment period is same for all A, B and C.
Hence, the ratio of their profit split will be same as ratio of amount invested i.e., 12 : 4 : 1.