A and B invest in a business with A investing $2000 and B investing $8000. If th

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Question: A and B invest in a business with A investing $2000 and B investing $8000. If they incur a loss of $1000, how much loss does A bear?

Options:

Correct Answer: $250

Solution:

Total investment = 2000 + 8000 = $10000. A\'s share of loss = (2000/10000) * 1000 = $200.

A and B invest in a business with A investing $2000 and B investing $8000. If they incur a loss of $1000, how much loss does A bear?

A and B invest in a business with A investing $2000 and B investing $8000. If they incur a loss of $1000, how much loss does A bear?

Step 1: Identify the amount A invested, which is $2000.
Step 2: Identify the amount B invested, which is $8000.
Step 3: Calculate the total investment by adding A's and B's investments: 2000 + 8000 = $10000.
Step 4: Determine the total loss incurred, which is $1000.
Step 5: Calculate A's share of the loss by finding the ratio of A's investment to the total investment: 2000 / 10000.
Step 6: Multiply A's share of the loss by the total loss: (2000 / 10000) * 1000.
Step 7: Calculate the result: (0.2) * 1000 = $200.
Step 8: Conclude that A bears a loss of $200.

Proportional Loss Sharing – Understanding how losses are shared based on the proportion of investment made by each party.
Basic Arithmetic – Applying basic arithmetic operations to calculate total investment and individual shares of loss.