If A and B invest in a business in the ratio 3:4 and A's profit is $900, what is

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Question: If A and B invest in a business in the ratio 3:4 and A\'s profit is $900, what is B\'s profit?

Options:

Correct Answer: $1200

Solution:

The profit ratio is the same as the investment ratio. If A\'s profit is $900, then B\'s profit = (4/3) * 900 = $1200.

If A and B invest in a business in the ratio 3:4 and A's profit is $900, what is B's profit?

If A and B invest in a business in the ratio 3:4 and A's profit is $900, what is B's profit?

Step 1: Understand that A and B invest in a business in the ratio 3:4. This means for every 3 parts A invests, B invests 4 parts.
Step 2: Recognize that the profit ratio will be the same as the investment ratio. So, A's profit and B's profit will also be in the ratio 3:4.
Step 3: Since A's profit is given as $900, we can set up the ratio of their profits: A's profit (3 parts) to B's profit (4 parts).
Step 4: Let B's profit be represented as 'x'. We can write the ratio as 3/4 = 900/x.
Step 5: Cross-multiply to solve for x: 3 * x = 4 * 900.
Step 6: Calculate 4 * 900, which equals 3600. So, we have 3x = 3600.
Step 7: Divide both sides by 3 to find x: x = 3600 / 3.
Step 8: Calculate 3600 / 3, which equals 1200. Therefore, B's profit is $1200.

Profit Sharing Ratio – The profit sharing ratio is directly proportional to the investment ratio made by the partners in a business.
Proportional Calculation – To find the profit of one partner based on the profit of another, use the ratio of their investments.