Note: The video for this module contains a summary of all the concepts covered in this lesson. The video would serve as a good revision. Please watch this video in intervals of a few weeks so that you do not forget the concepts. Below is a cheatsheet that includes all the formulae but not necessarily the concepts covered in the video.
9. Cheatsheet
1) Ratio is the quantitative relationship or comparison of numbers. It indicates the relationship of one quantity with respect to another.
2) A ratio of 2 numbers can be expressed as a fraction in this way ⇒ a:b=ba, where a is called the antecedent and b is called the consequent
3) a:b=ka:kb=ka:kb
4) To simplify a ratio with fractions, we multiply the ratio with the LCM of the denominators
5) For ratios with 2 terms, we can cross-multiply the numerators and denominators ⇒ ba:dc=ad:bc
6) If ba>dc, then ad>bc and if ba<dc, then ad<bc
7) If the ratio ba is multiplied with nm, then bnam>ba where m>n and bnam<ba where m<n
8) If ba=q1p1,cb=q2p2,dc=q3p3,ed=q4p4, then
9) The quantities linked through a ratio can be represented with only 1 variable.
10) When a×b=c, and if ratio of a-values and b-values are given, then to find the ratio of the c-values, we can directly multiply the corresponding a-terms and b-terms in the respective ratios.
11) For 2 partners A and B, Profit of BProfit of A=Investment of B×Duration of B’s InvestmentInvestment of A×Duration of A’s Investment
12) Where IX is the investment of partner X, DX is the duration of X's investment and PX is the Profit of partner X, the ratio of profits of 4 partners A, B, C and D is
PA:PB:PC:PD=IADA:IBDB:ICDC:IDDD
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