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A and B start a business with investments of $12,000 and $18,000 respectively. I

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Question: A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $30,000, how much will A receive?

Options:

  1. $12,000
  2. $10,000
  3. $8,000
  4. $15,000

Correct Answer: $10,000

Solution:

Total investment = 12,000 + 18,000 = 30,000. A\'s share = (12,000/30,000) * 30,000 = $12,000.

A and B start a business with investments of $12,000 and $18,000 respectively. I

Practice Questions

Q1
A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $30,000, how much will A receive?
  1. $12,000
  2. $10,000
  3. $8,000
  4. $15,000

Questions & Step-by-Step Solutions

A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $30,000, how much will A receive?
  • Step 1: Identify the investments of A and B. A invested $12,000 and B invested $18,000.
  • Step 2: Calculate the total investment by adding A's and B's investments: 12,000 + 18,000 = 30,000.
  • Step 3: Determine A's share of the total investment by dividing A's investment by the total investment: 12,000 / 30,000.
  • Step 4: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (12,000 / 30,000) * 30,000.
  • Step 5: Simplify the calculation: (12,000 / 30,000) = 0.4, so A's share of the profit is 0.4 * 30,000 = $12,000.
  • Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners.
  • Ratios – Calculating shares based on the proportion of individual investments to total investments.
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