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#1 2012-10-25 19:56:36

Still Learning
Guest

Investment problem

How do I solve this problem-
Mr.A and Mr.B invested 1000 and 15000 dollers for a year in a project,after 6 months,Mr.C invests 12000 dollers for 6 months,after 6 months the whole profit from the project is 100000 dollers,I need to distribute the profit among these 3 according to their investment and time.so what will be the distributed profits.

#2 2012-10-25 19:58:26

Still learning
Guest

Re: Investment problem

Sorry,Mr.A invested 10000 dollers,I posted wrong.

#3 2012-10-25 20:06:39

bob bundy
Moderator
Registered: 2010-06-20
Posts: 6,469

Re: Investment problem

hi Still Learning

Welcome to the forum.

If I've understood this correctly the ratio of A's investment : B's investment is 2:3.

Then C comes along only investing his amount for half the time.

You'd need lots of new information to take account of investment rate variation between the first half and the second half of the year, so I'll assume equal rates throughtout and calculate on the basis of amounts invested per half year.

So for A :    2 half years of 10000 = a weighting of 20000

For B     :    2 half years of 15000 =a weighting of  30000

For C    :     1 half year of 12000 = a weighting of 12000

So the shareout ratios are A : B : C = 20000 : 30000 : 12000 = 20 : 30 : 12 = 10  :  15  :  6

That makes 31 equal shares to give out, with A getting 10/31 etc.

Bob


You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei

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