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    Question

    Raman invested Rs. 70,000 in a bank offering 10%

    compound interest per annum for 2 years. After 2 years, he used the total amount to start a business with Raj, who contributed Rs. 50,000. Raman invested his amount for 8 months, while Raj kept his investment in the business for the entire year. What will be the ratio of their profits at the end of the year?
    A 8: 5 Correct Answer Incorrect Answer
    B 4: 7 Correct Answer Incorrect Answer
    C 9: 8 Correct Answer Incorrect Answer
    D 9: 7 Correct Answer Incorrect Answer
    E none Correct Answer Incorrect Answer

    Solution

    Raj invested 50,000 for 12 months Required ratio = 84,700×8: 50,000×12 = 677600: 600,000 = 6776: 6000 = 847: 750

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