If A and B invest in a business in the ratio of 3:4 and the total profit is $90,

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Question: If A and B invest in a business in the ratio of 3:4 and the total profit is $90,000, what is A\'s share?

Options:

Correct Answer: $36,000

Solution:

A\'s share = (A\'s ratio / Total ratio) * Total profit = (3 / 7) * 90000 = $38,571.43.

If A and B invest in a business in the ratio of 3:4 and the total profit is $90,000, what is A's share?

If A and B invest in a business in the ratio of 3:4 and the total profit is $90,000, what is A's share?

Step 1: Identify the ratio of A and B's investment. A's ratio is 3 and B's ratio is 4.
Step 2: Calculate the total ratio by adding A's ratio and B's ratio together. Total ratio = 3 + 4 = 7.
Step 3: Find A's share of the total profit. Use the formula: A's share = (A's ratio / Total ratio) * Total profit.
Step 4: Substitute the values into the formula: A's share = (3 / 7) * 90000.
Step 5: Calculate A's share: A's share = 0.42857 * 90000 = 38571.43.
Step 6: Round the answer if necessary. A's share is approximately $38,571.43.

Ratio and Proportion – Understanding how to divide profits based on the ratio of investments.
Profit Sharing – Calculating individual shares from a total profit based on their investment ratios.