Question

Ajmal made a profit of ₹ 4500 after investing ₹ 80000. Salim made a

profit of ₹ 8100 after investing ₹ 144000 in his business. Which of them

has a better profit ratio with respect to their investments?

Answer 1

Concept we will be using :
(i) Ratios are expressed in reduced form.

(ii) Profit ratio is given by,  $Profit : Investment$  
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Calculating Ajmal:
Ajmal's investment = INR80000
Ajmal's profit = INR4500

Profit ratio:
Profit : Investement
=4500 : 80000
=(9*500) : (160*500)
=9 :160

Calculating Salim:
Salim's investment = INR144000
Salim's profit = INR8100

Profit ratio:
Profit : Investement
=8100 : 144000
=(9*900) : (160*900)
=9 :160

Compare Ajmal's profit ratio (9 : 160) and Salim's profit ratio (9 :160).
Both the profit ratios are equal.

Answer: Both the profit ratios  are equal. 

Answer 2

Both the profit ratio are equal..

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