A and B invest in a business with A investing $30,000 and B investing $50,000. I

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Question: A and B invest in a business with A investing $30,000 and B investing $50,000. If they make a profit of $40,000, how much will B receive?

Options:

$20,000
$25,000
$30,000
$15,000

Correct Answer: $25,000

Solution:

Total investment = 30000 + 50000 = 80000. B\'s share = (50000/80000) * 40000 = $25,000.

A and B invest in a business with A investing $30,000 and B investing $50,000. I

Practice Questions

A and B invest in a business with A investing $30,000 and B investing $50,000. If they make a profit of $40,000, how much will B receive?

$20,000
$25,000
$30,000
$15,000

Questions & Step-by-Step Solutions

A and B invest in a business with A investing $30,000 and B investing $50,000. If they make a profit of $40,000, how much will B receive?

Step 1: Identify the amount A invested, which is $30,000.
Step 2: Identify the amount B invested, which is $50,000.
Step 3: Calculate the total investment by adding A's and B's investments: 30000 + 50000 = 80000.
Step 4: Determine B's share of the total investment by dividing B's investment by the total investment: 50000 / 80000.
Step 5: Calculate B's share of the profit by multiplying B's share of the investment by the total profit: (50000 / 80000) * 40000.
Step 6: Simplify the calculation: (0.625) * 40000 = 25000.
Step 7: Conclude that B will receive $25,000.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment.
Fractional Calculations – Calculating shares based on total contributions and profits.

A and B invest in a business with A investing $30,000 and B investing $50,000. I

What’s inside this PDF?

A and B invest in a business with A investing $30,000 and B investing $50,000. I

Practice Questions

Questions & Step-by-Step Solutions

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