A and B each invest Rs. 8000 to start a business. After 4 months, B reduces his investment by half. How should the profits be divided between them after 18 months?

Explanation

A invests Rs. 8000 for the entire 18 months, while B invests Rs. 8000 for the first 4 months and then Rs. 4000 for the remaining 14 months. Calculating their investment durations: A's capital contribution equals 8000 × 18 = 144000, and B's contribution equals (8000 × 4) + (4000 × 14) = 32000 + 56000 = 88000. Simplifying the ratio 144000:88000 gives 18:11, which is how the profits should be shared.