A and B invest in a business with A investing $2000 and B investing $3000. If th

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Question: A and B invest in a business with A investing $2000 and B investing $3000. If they make a profit of $1000, how much profit does A get?

Options:

Correct Answer: $600

Solution:

Total investment = 2000 + 3000 = $5000. A\'s share = (2000/5000) * 1000 = $400.

A and B invest in a business with A investing $2000 and B investing $3000. If they make a profit of $1000, how much profit does A get?

A and B invest in a business with A investing $2000 and B investing $3000. If they make a profit of $1000, how much profit does A get?

Correct Answer: $400

Step 1: Identify how much A invested. A invested $2000.
Step 2: Identify how much B invested. B invested $3000.
Step 3: Calculate the total investment by adding A's and B's investments: 2000 + 3000 = 5000.
Step 4: Determine A's share of the total investment by dividing A's investment by the total investment: 2000 / 5000.
Step 5: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (2000 / 5000) * 1000.
Step 6: Simplify the calculation: (2000 / 5000) = 0.4, then 0.4 * 1000 = 400.
Step 7: Conclude that A's profit is $400.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment.
Ratio and Proportion – Calculating shares of profit using ratios derived from individual investments.