Ratio: Question 6 - Ratios for different periods

A1-Tutor and myFATutor are to make investment in their company as follows

A1-Tutor invests £1,800 for a period of 15 months

myFATutor invests £4,500 for a period of 9 months.

A total sum of £540,000 is to be shared between them in the ratio of their investments. Calculate how much each gets

Solution 

Given that

A1-Tutor invests £1,800 for 15 months

A1-Tutor’s investment = £1,800 * 15 (For purpose of ratio)                  

= £27,000

myFATutor invests £4,500 for 9 months

myFATutor’s investment = £4,500 * 9 (For purpose of ratio)                           

= £40,500

Ratio of investment = 27000 : 40500

                                   = 2 : 3 (reduced to lowest terms)

Total ratio                  = 2 + 3 = 5

Amount to be shared = £540,000

A1-Tutor’s share                   = ²/₅ *  £540,000

= £216,000                               

myFATutor’s share     = ³/₅ * £540,000

                             = £324, 000