A and B invest in a business with investments of $15,000 and $25,000 respectivel

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What’s inside this PDF?

Question: A and B invest in a business with investments of $15,000 and $25,000 respectively. If they make a profit of $40,000, how much will B receive?

Options:

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

Correct Answer: $30,000

Solution:

Total investment = 15,000 + 25,000 = 40,000. B\'s share = (25,000/40,000) * 40,000 = $25,000.

A and B invest in a business with investments of $15,000 and $25,000 respectivel

Practice Questions

A and B invest in a business with investments of $15,000 and $25,000 respectively. If they make a profit of $40,000, how much will B receive?

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

Questions & Step-by-Step Solutions

A and B invest in a business with investments of $15,000 and $25,000 respectively. If they make a profit of $40,000, how much will B receive?

Step 1: Identify the investments of A and B. A invests $15,000 and B invests $25,000.
Step 2: Calculate the total investment by adding A's and B's investments together: 15,000 + 25,000 = 40,000.
Step 3: Determine B's share of the total investment by dividing B's investment by the total investment: 25,000 / 40,000.
Step 4: Calculate B's share of the profit by multiplying B's share of the investment by the total profit: (25,000 / 40,000) * 40,000.
Step 5: Simplify the calculation: (25,000 / 40,000) * 40,000 = 25,000.
Step 6: Conclude that B will receive $25,000 from the profit.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment.
Proportional Distribution – Calculating each partner's share of profit based on their investment relative to the total investment.

A and B invest in a business with investments of $15,000 and $25,000 respectivel

What’s inside this PDF?

A and B invest in a business with investments of $15,000 and $25,000 respectivel

Practice Questions

Questions & Step-by-Step Solutions

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