A and B invest in a business with A investing $3000 and B investing $7000. If th
Practice Questions
Q1
A and B invest in a business with A investing $3000 and B investing $7000. If the profit is divided in the ratio of their investments, what is A's share if the total profit is $5000?
$1500
$2000
$1000
$2500
Questions & Step-by-Step Solutions
A and B invest in a business with A investing $3000 and B investing $7000. If the profit is divided in the ratio of their investments, what is A's share if the total profit is $5000?
Correct Answer: $1500
Step 1: Identify the amount A invested, which is $3000.
Step 2: Identify the amount B invested, which is $7000.
Step 3: Calculate the total investment by adding A's and B's investments: 3000 + 7000 = 10000.
Step 4: Find the ratio of A's investment to the total investment: 3000 / 10000.
Step 5: Calculate A's share of the profit by multiplying the ratio by the total profit: (3000 / 10000) * 5000.
Step 6: Simplify the calculation: (0.3) * 5000 = 1500.
Step 7: Conclude that A's share of the profit is $1500.
Ratio and Proportion – Understanding how to divide profits based on the ratio of investments.
Basic Arithmetic – Performing addition and multiplication to calculate shares.
