A and B start a business with investments of $5000 and $7000 respectively. If th

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What’s inside this PDF?

Question: A and B start a business with investments of $5000 and $7000 respectively. If they earn a profit of $2400, how much profit does A receive?

Options:

$1000
$1200
$1400
$800

Correct Answer: $1200

Solution:

Total investment = 5000 + 7000 = $12000. A\'s share = (5000/12000) * 2400 = $1000.

A and B start a business with investments of $5000 and $7000 respectively. If th

Practice Questions

A and B start a business with investments of $5000 and $7000 respectively. If they earn a profit of $2400, how much profit does A receive?

$1000
$1200
$1400
$800

Questions & Step-by-Step Solutions

A and B start a business with investments of $5000 and $7000 respectively. If they earn a profit of $2400, how much profit does A receive?

Step 1: Identify the investments of A and B. A invested $5000 and B invested $7000.
Step 2: Calculate the total investment by adding A's and B's investments: 5000 + 7000 = 12000.
Step 3: Determine A's share of the total investment by dividing A's investment by the total investment: 5000 / 12000.
Step 4: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (5000 / 12000) * 2400.
Step 5: Perform the calculation: (5000 / 12000) = 0.4167 (approximately), then 0.4167 * 2400 = 1000.
Step 6: Conclude that A receives a profit of $1000.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners in a business.
Ratios and Proportions – Applying ratios to determine each partner's share of the total profit based on their respective investments.

A and B start a business with investments of $5000 and $7000 respectively. If th

What’s inside this PDF?

A and B start a business with investments of $5000 and $7000 respectively. If th

Practice Questions

Questions & Step-by-Step Solutions

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