A and B start a business with investments of $25,000 and $35,000 respectively. I

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Question: A and B start a business with investments of $25,000 and $35,000 respectively. If they make a profit of $12,000, how much will A receive?

Options:

$5,000
$6,000
$7,000
$8,000

Correct Answer: $6,000

Solution:

Total investment = 25000 + 35000 = 60000. A\'s share = (25000/60000) * 12000 = $5,000.

A and B start a business with investments of $25,000 and $35,000 respectively. I

Practice Questions

A and B start a business with investments of $25,000 and $35,000 respectively. If they make a profit of $12,000, how much will A receive?

$5,000
$6,000
$7,000
$8,000

Questions & Step-by-Step Solutions

A and B start a business with investments of $25,000 and $35,000 respectively. If they make a profit of $12,000, how much will A receive?

Step 1: Identify the investments of A and B. A invested $25,000 and B invested $35,000.
Step 2: Calculate the total investment by adding A's and B's investments: 25000 + 35000 = 60000.
Step 3: Determine A's share of the total investment by dividing A's investment by the total investment: 25000 / 60000.
Step 4: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (25000 / 60000) * 12000.
Step 5: Simplify the calculation: (25000 / 60000) = 0.4167 (approximately), then multiply by 12000 to get A's profit: 0.4167 * 12000 = 5000.
Step 6: Conclude that A will receive $5,000 from the profit.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners.
Ratios and Proportions – Calculating shares based on the total investment and individual contributions.

A and B start a business with investments of $25,000 and $35,000 respectively. I

What’s inside this PDF?

A and B start a business with investments of $25,000 and $35,000 respectively. I

Practice Questions

Questions & Step-by-Step Solutions

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