A and B invest in a business with A investing $3000 and B investing $5000. If th

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Question: A and B invest in a business with A investing $3000 and B investing $5000. If they incur a loss of $400, how much loss does B bear?

Options:

Correct Answer: $250

Solution:

Total investment = 3000 + 5000 = $8000. B\'s share of loss = (5000/8000) * 400 = $250.

A and B invest in a business with A investing $3000 and B investing $5000. If they incur a loss of $400, how much loss does B bear?

A and B invest in a business with A investing $3000 and B investing $5000. If they incur a loss of $400, how much loss does B bear?

Step 1: Identify the amount A invested, which is $3000.
Step 2: Identify the amount B invested, which is $5000.
Step 3: Calculate the total investment by adding A's and B's investments: 3000 + 5000 = 8000.
Step 4: Determine B's share of the total investment by dividing B's investment by the total investment: 5000 / 8000.
Step 5: Calculate B's share of the loss by multiplying B's share of the investment by the total loss: (5000 / 8000) * 400.
Step 6: Simplify the calculation: (0.625) * 400 = 250.
Step 7: Conclude that B bears a loss of $250.

Proportional Loss Sharing – Understanding how losses are shared based on the proportion of investment made by each party.
Basic Arithmetic – Performing addition and multiplication to calculate total investment and share of loss.