
The investment of A is twice as that of B and thrice as that of C, B invested for twice the months that A and thrice the months than C, who will earn the highest profit.
Answer
485.7k+ views
Hint: Multiply the investment ratio with the month ratio. ROI tries to directly measure the amount of return on a particular investment, relative to the investment's cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio. There are five basic ratios that are often used to pick stocks for investment portfolios. These include price-earnings (P/E), earnings per share, debt-to-equity and return on equity (ROE).
Complete step by step solution: The three main categories of ratios include profitability, leverage and liquidity ratios. Knowing the individual ratios in each category and the role they plan can help you make beneficial financial decisions concerning your future.
According to the question.
A) Invests twice than B and thrice of C.
B) Invests for twice the month an invested and thrice the month C invested
Investment ratio $=\text{A:B:C}=6:3:2$
Month ratio: 3: 6: 2
Then,
$6\times 3:3\times 6:2\times 2$
$=18:18:4$ (Taking 2 common)
$=9:9:2$
Then both A and B are equal.
Hence A and B get the equal and highest profit.
Note: In this type of question, be careful about what the ratio says, it is sometimes a bit confusing. Generally, an interest coverage ratio of at least two (2) is considered the minimum acceptable amount for a company that has solid, consistent revenues. In contrast, a coverage ratio below one (1) indicates a company cannot meet its current interest payment obligations and, therefore, is not in good financial health.
Complete step by step solution: The three main categories of ratios include profitability, leverage and liquidity ratios. Knowing the individual ratios in each category and the role they plan can help you make beneficial financial decisions concerning your future.
According to the question.
A) Invests twice than B and thrice of C.
B) Invests for twice the month an invested and thrice the month C invested
Investment ratio $=\text{A:B:C}=6:3:2$
Month ratio: 3: 6: 2
Then,
$6\times 3:3\times 6:2\times 2$
$=18:18:4$ (Taking 2 common)
$=9:9:2$
Then both A and B are equal.
Hence A and B get the equal and highest profit.
Note: In this type of question, be careful about what the ratio says, it is sometimes a bit confusing. Generally, an interest coverage ratio of at least two (2) is considered the minimum acceptable amount for a company that has solid, consistent revenues. In contrast, a coverage ratio below one (1) indicates a company cannot meet its current interest payment obligations and, therefore, is not in good financial health.
Recently Updated Pages
Master Class 11 Accountancy: Engaging Questions & Answers for Success

What percentage of the area in India is covered by class 10 social science CBSE

The area of a 6m wide road outside a garden in all class 10 maths CBSE

What is the electric flux through a cube of side 1 class 10 physics CBSE

If one root of x2 x k 0 maybe the square of the other class 10 maths CBSE

The radius and height of a cylinder are in the ratio class 10 maths CBSE

Trending doubts
The Equation xxx + 2 is Satisfied when x is Equal to Class 10 Maths

Why is there a time difference of about 5 hours between class 10 social science CBSE

Change the following sentences into negative and interrogative class 10 english CBSE

What constitutes the central nervous system How are class 10 biology CBSE

Write a letter to the principal requesting him to grant class 10 english CBSE

Explain the Treaty of Vienna of 1815 class 10 social science CBSE
