If A and B invest in a business in the ratio of 3:4 and the total profit is $70,

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Question: If A and B invest in a business in the ratio of 3:4 and the total profit is $70,000, how much does B receive?

Options:

Correct Answer: $40,000

Solution:

B\'s share = (B\'s ratio / Total ratio) * Total profit = (4 / 7) * 70000 = $40,000.

If A and B invest in a business in the ratio of 3:4 and the total profit is $70,000, how much does B receive?

If A and B invest in a business in the ratio of 3:4 and the total profit is $70,000, how much does B receive?

Step 1: Identify the ratio of A and B's investment. A's ratio is 3 and B's ratio is 4.
Step 2: Calculate the total ratio by adding A's ratio and B's ratio together. Total ratio = 3 + 4 = 7.
Step 3: Find B's share of the profit using the formula: B's share = (B's ratio / Total ratio) * Total profit.
Step 4: Substitute the values into the formula: B's share = (4 / 7) * 70000.
Step 5: Calculate B's share: (4 / 7) * 70000 = 40000.
Step 6: Conclude that B receives $40,000.

Ratio and Proportion – Understanding how to divide profits based on the ratio of investments.
Profit Distribution – Calculating individual shares from a total profit based on given ratios.