If C invests $20,000 and D invests $30,000 in a partnership, and they earn a pro

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Question: If C invests $20,000 and D invests $30,000 in a partnership, and they earn a profit of $50,000, how much will C receive?

Options:

Correct Answer: $33,333

Solution:

C\'s share = (20000 / (20000 + 30000)) * 50000 = (20000 / 50000) * 50000 = $20,000.

If C invests $20,000 and D invests $30,000 in a partnership, and they earn a profit of $50,000, how much will C receive?

If C invests $20,000 and D invests $30,000 in a partnership, and they earn a profit of $50,000, how much will C receive?

Step 1: Identify the total investment by C and D. C invests $20,000 and D invests $30,000.
Step 2: Calculate the total investment: $20,000 (C) + $30,000 (D) = $50,000.
Step 3: Determine C's share of the total investment: C's share = C's investment / Total investment = $20,000 / $50,000.
Step 4: Simplify C's share: $20,000 / $50,000 = 0.4 (or 40%).
Step 5: Calculate C's share of the profit: C's share of profit = C's share * Total profit = 0.4 * $50,000.
Step 6: Calculate the amount: 0.4 * $50,000 = $20,000.
Step 7: Conclude that C will receive $20,000.

Partnership Profit Sharing – Understanding how profits are distributed in a partnership based on the ratio of individual investments.
Proportional Distribution – Calculating shares based on the total investment to determine each partner's earnings.