Question : The ratio of investments of P and Q is 4 : 5. P invests for 1 year and Q invests for 2 years. What is the ratio of profit of P and Q?
Option 1: 3 : 5
Option 2: 4 : 7
Option 3: 2 : 5
Option 4: 1 : 2
Correct Answer: 2 : 5
Solution :
The ratio of investment of P and Q = 4 : 5
Time ratio (in years) = 1 : 2
The profit ratio is equal to the product of investment and time ratio.
So, the profit ratio of P and Q = (4 × 1) : (5 × 2) = 4 : 10 = 2 : 5
Hence, the correct answer is 2 : 5.
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