A and B invest in a business in the ratio of 3:2. If the total profit is $5000,

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Question: A and B invest in a business in the ratio of 3:2. If the total profit is $5000, how much does B receive?

Options:

Correct Answer: $2000

Solution:

Total parts = 3 + 2 = 5. B\'s share = (2/5) * 5000 = $2000.

A and B invest in a business in the ratio of 3:2. If the total profit is $5000, how much does B receive?

A and B invest in a business in the ratio of 3:2. If the total profit is $5000, how much does B receive?

Step 1: Identify the ratio of investment between A and B, which is 3:2.
Step 2: Add the parts of the ratio together: 3 + 2 = 5 parts total.
Step 3: Determine B's share of the profit. B's part of the ratio is 2.
Step 4: Calculate B's share of the total profit using the formula: (B's part / total parts) * total profit.
Step 5: Substitute the values: (2 / 5) * 5000.
Step 6: Calculate the result: 2 * 5000 = 10000, then divide by 5: 10000 / 5 = 2000.
Step 7: Conclude that B receives $2000.

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 ratio.