2. Three friends, A, B, and C, invest money in the ratio 2:3:5. After 6 months later, A invests another amount equaling $35,000, while C withdraws $15,000. The ratio of investments then changes to 11:6:7. What is the ratio of profit sharing at the end of the year if profit sharing is determined by the amount of money invested weighted by the time spent in the investment?
Answer: D
The ratio of profit sharing at the end of the year is 15:12:17.
The profit sharing ratio among friends A, B, and C at the end of the year, based on their investments and the duration of those investments, is determined to be 15:12:17.
A) 5:02:06
This option is incorrect as it does not reflect the actual profit sharing ratio derived from the weighted investments and the time each friend had their money invested. The ratios of 5:02:06 do not correspond to the final calculations based on the changes in investment amounts over the investment period.
B) 9:05:12
This option is also incorrect. While it presents a ratio format, it fails to account for the specific changes in investments and the corresponding time each amount was invested. The calculations show that the actual profit sharing does not align with this combination.
C) 10:06:15
This option does not match the calculated profit sharing ratio. Although it uses a different set of numbers, it does not consider the adjustments made by A's additional investment and C's withdrawal, leading to a discrepancy with the actual profit sharing derived from the investments.
D) 15:12:17
This is the correct option. It accurately reflects the new profit sharing ratio after considering the initial investments, the additional amount invested by A, the amount withdrawn by C, and the total time each investment was held. The calculations confirm this ratio aligns with the changes made in the investments over the year.
E) 18:16:25
This option is incorrect as it does not correspond to the calculated profit sharing ratio. The numbers do not accurately represent the contributions of each friend based on their investments and the time involved.
Conclusion
The ratio of 15:12:17 is the only option that accurately represents the profit sharing based on the adjusted investments and time held. Other options fail to account for the specific changes in the amounts invested, which are critical to determining the correct profit distribution among A, B, and C.