The GATE Grind

GATE 2022 CE (CE2) – Question 7

General Aptitude · Quantitative Aptitude: Arithmetic and Number Computation · 2 marks · Multiple choice

In a partnership business the monthly investment by three friends for the first six months is in the ratio 3: 4: 5. After six months, they had to increase their monthly investments by 10%, 15% and 20%, respectively, of their initial monthly investment. The new investment ratio was kept constant for the next six months. What is the ratio of their shares in the total profit (in the same order) at the end of the year such that the share is proportional to their individual total investment over the year?

  1. 22 : 23 : 24
  2. 22 : 33 : 50
  3. 33 : 46 : 60
  4. 63 : 86 : 110

Practise this question in The GATE Grind →

Show answer and explanation

Correct answer: (D) 63 : 86 : 110

Explanation

Let initial monthly investments be 3,4,5 units. Six months at each of the two rates gives totals proportional to $3(1+1.10)$, $4(1+1.15)$ and $5(1+1.20)$.

These are 6.3,8.6,11, hence the profit ratio is **63:86:110 (D)**. The common factor of six months cancels.