Ram invest Rs 100 and Sham invest Rs 200 in Jan. Again Ram invest Rs 400 and sham invest Rs 200 in march. In Dec, there was profit of Rs 1000. How to divide profit between Ram and Sham
Ram: Rs 500
Sham: Rs 400
500/900 = 0.5556 = 55.56%
400/900 = 0.4444 - 44.44%
Use those percentages to divide the profit.
To divide the profit between Ram and Sham, we need to determine the proportion of their investments relative to the total investment and then distribute the profit accordingly.
Let's calculate the total investment first. In January, Ram invested Rs 100 and Sham invested Rs 200, which gives us a total investment of Rs 100 + Rs 200 = Rs 300. In March, Ram invested an additional Rs 400 and Sham invested Rs 200, so the total investment becomes Rs 300 + Rs 400 + Rs 200 = Rs 900.
Now, to calculate the proportion of each person's investment relative to the total investment, we divide each person's investment by the total investment.
For Ram:
Proportion of Ram's investment = Ram's investment / Total investment = Rs 500 / Rs 900
For Sham:
Proportion of Sham's investment = Sham's investment / Total investment = Rs 400 / Rs 900
To divide the profit, we multiply each person's proportion of investment by the profit amount.
Profit share for Ram = Proportion of Ram's investment * Profit = (Rs 500 / Rs 900) * Rs 1000
Profit share for Sham = Proportion of Sham's investment * Profit = (Rs 400 / Rs 900) * Rs 1000
Therefore, Ram's share of the profit would be (Rs 500 / Rs 900) * Rs 1000 and Sham's share would be (Rs 400 / Rs 900) * Rs 1000.