Partners P and Q invest in a 7:5 ratio and earn profits in a 7:10 ratio. If P invested for 5 months, for how long did Q invest?
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Answer: B. 10 months
Explanation
The partnership ratio calculation relies on equating the product of investment and time proportionally. Multiplying partner P investment by duration and dividing by partner Q product yields the correct ratio. Isolating the unknown variable t through cross multiplication confirms a total duration of ten months. Partnership profit distribution always depends directly on the invested capital multiplied by time duration. The fundamental formula dictates that profit share equals the product of individual investment and duration. Given values allow setting up a proportion equation to solve for the missing timeframe variable.
Businesses apply these proportional calculations to divide corporate dividends fairly among contributing stakeholders. Understanding partnership math helps founders draft accurate shareholder agreements for commercial joint ventures. Investors track capital duration closely to evaluate the annualized return on their deployed funds. Option A suggests seven months which contradicts the mathematical outcome derived from the proportion formula. Option C introduces nine months incorrectly because it fails to satisfy the balanced equation requirements. Option D proposes eleven months which completely distorts the underlying investment and profit ratios.
- Subject
- Mathematics
- Category
- Mathematics
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- Difficulty
- medium
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