Susan and Lucy have invested in a venture. Susan invested an amount in the initial months and then reduced that amount by 1/4th after 4 months and then again reduced the amount by 1/2 of the currently being invested after 8 months. Lucy joined after 2 months from Susan’s initial month and invested 90 % of Susan’s last month contribution every month. Quantity A Quantity B Susan’s share in profit after Lucy’s share in profit after oneone year year
A. Quantity A is greater. B. Quantity B is greater. C. The two quantities are equal. D. The relationship can not be determined from the information given.
Quantity a is greater.-ans: a (the share in profit will in proportion to the total investment by each.
let susan invested $a initially every month.
she would invest $a every month for 4 months.
after 4 months, she would invest (a (�)a) = 3/4 a every month for 4 months. finally, she would invest 3/4 a 1/2 of 3/4 a = 3/8 a.
so susans total investment in one year = 4xa + 4x3/4 a + 4x3/8 a = 17/2 a.
now lucys contribution = 10 x 0.9 (3/8 a) = 27/8 a. (90% of susans last month contribution (3/8 a)).
the share in profit of susan & lucy = (17/2) a : (27/8) a = 68 : 27 ((17/2) a / (27/8) a).
hence quantity a is greater.)