A and B invest in a business with A investing $10,000 and B investing $15,000. I

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What’s inside this PDF?

Question: A and B invest in a business with A investing $10,000 and B investing $15,000. If they make a profit of $25,000, how much does A receive?

Options:

$10,000
$12,500
$8,333
$6,250

Correct Answer: $12,500

Solution:

A\'s share = (A\'s investment / Total investment) * Total profit = (10000 / 25000) * 25000 = $10,000.

A and B invest in a business with A investing $10,000 and B investing $15,000. I

Practice Questions

A and B invest in a business with A investing $10,000 and B investing $15,000. If they make a profit of $25,000, how much does A receive?

$10,000
$12,500
$8,333
$6,250

Questions & Step-by-Step Solutions

A and B invest in a business with A investing $10,000 and B investing $15,000. If they make a profit of $25,000, how much does A receive?

Step 1: Identify A's investment amount, which is $10,000.
Step 2: Identify B's investment amount, which is $15,000.
Step 3: Calculate the total investment by adding A's and B's investments: $10,000 + $15,000 = $25,000.
Step 4: Identify the total profit made by the business, which is $25,000.
Step 5: Calculate A's share of the profit using the formula: (A's investment / Total investment) * Total profit.
Step 6: Substitute the values into the formula: (10000 / 25000) * 25000.
Step 7: Simplify the fraction: 10000 / 25000 = 0.4.
Step 8: Multiply 0.4 by the total profit: 0.4 * 25000 = $10,000.
Step 9: Conclude that A receives $10,000.

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

A and B invest in a business with A investing $10,000 and B investing $15,000. I

What’s inside this PDF?

A and B invest in a business with A investing $10,000 and B investing $15,000. I

Practice Questions

Questions & Step-by-Step Solutions

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