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If A invests $4000 and B invests $6000 in a business, and they agree to share pr

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Question: If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A\'s share of a profit of $5000?

Options:

  1. $2000
  2. $1500
  3. $2500
  4. $3000

Correct Answer: $2500

Solution:

Total investment = 4000 + 6000 = 10000. A\'s share = (4000/10000) * 5000 = $2000.

If A invests $4000 and B invests $6000 in a business, and they agree to share pr

Practice Questions

Q1
If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A's share of a profit of $5000?
  1. $2000
  2. $1500
  3. $2500
  4. $3000

Questions & Step-by-Step Solutions

If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A's share of a profit of $5000?
  • Step 1: Identify the amount A invested, which is $4000.
  • Step 2: Identify the amount B invested, which is $6000.
  • Step 3: Calculate the total investment by adding A's and B's investments: 4000 + 6000 = 10000.
  • Step 4: Determine A's share of the total investment by dividing A's investment by the total investment: 4000 / 10000.
  • Step 5: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (4000 / 10000) * 5000.
  • Step 6: Simplify the calculation: (0.4) * 5000 = 2000.
  • Step 7: Conclude that A's share of the profit is $2000.
  • Profit Sharing – Understanding how to calculate profit shares based on investment ratios.
  • Ratios – Applying ratios to determine individual shares from a total profit.
  • Basic Arithmetic – Performing addition and multiplication to solve for shares.
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