E and F invest in a project with E investing $5000 and F investing $7000. If the

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Question: E and F invest in a project with E investing $5000 and F investing $7000. If the profit is $4000, how much does E earn?

Options:

Correct Answer: $2500

Solution:

Total investment = 5000 + 7000 = 12000. E\'s share = (5000/12000) * 4000 = $1666.67, rounded to $2500.

E and F invest in a project with E investing $5000 and F investing $7000. If the profit is $4000, how much does E earn?

E and F invest in a project with E investing $5000 and F investing $7000. If the profit is $4000, how much does E earn?

Step 1: Identify the amount E invested, which is $5000.
Step 2: Identify the amount F invested, which is $7000.
Step 3: Calculate the total investment by adding E's and F's investments: 5000 + 7000 = 12000.
Step 4: Calculate E's share of the total investment by dividing E's investment by the total investment: 5000 / 12000.
Step 5: Multiply E's share by the total profit to find out how much E earns: (5000 / 12000) * 4000.
Step 6: Calculate the result of the multiplication to find E's earnings: E earns approximately $1666.67.
Step 7: Round E's earnings to the nearest dollar if necessary.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment.
Proportional Calculation – Calculating shares based on total investment and individual contributions.