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A, B, and C invest in a business with A investing $10,000, B $20,000, and C $30,

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Question: A, B, and C invest in a business with A investing $10,000, B $20,000, and C $30,000. If the total profit is $90,000, what is B\'s share?

Options:

  1. $30,000
  2. $20,000
  3. $15,000
  4. $25,000

Correct Answer: $30,000

Solution: 

B\'s share = (B\'s investment / Total investment) * Total profit = (20000 / 60000) * 90000 = $30,000.

A, B, and C invest in a business with A investing $10,000, B $20,000, and C $30,

Practice Questions

Q1
A, B, and C invest in a business with A investing $10,000, B $20,000, and C $30,000. If the total profit is $90,000, what is B's share?
  1. $30,000
  2. $20,000
  3. $15,000
  4. $25,000

Questions & Step-by-Step Solutions

A, B, and C invest in a business with A investing $10,000, B $20,000, and C $30,000. If the total profit is $90,000, what is B's share?
  • Step 1: Identify the investments of A, B, and C. A invests $10,000, B invests $20,000, and C invests $30,000.
  • Step 2: Calculate the total investment by adding A's, B's, and C's investments together: $10,000 + $20,000 + $30,000 = $60,000.
  • Step 3: Find B's share of the total profit. The total profit is $90,000.
  • Step 4: Calculate the fraction of the total investment that B's investment represents: B's investment ($20,000) divided by total investment ($60,000) gives us 20,000 / 60,000.
  • Step 5: Simplify the fraction: 20,000 / 60,000 = 1/3.
  • Step 6: Multiply B's fraction (1/3) by the total profit ($90,000) to find B's share: (1/3) * 90,000 = $30,000.
  • Profit Sharing – Understanding how profits are distributed based on individual investments in a business.
  • Proportional Calculation – Calculating shares based on the ratio of individual contributions to total contributions.
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