If A and B invest $10,000 and $15,000 respectively, and C joins later with $25,0

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Question: If A and B invest $10,000 and $15,000 respectively, and C joins later with $25,000, what is the profit-sharing ratio after C joins?

Options:

Correct Answer: 2:3:5

Solution:

Total investment = 10000 + 15000 + 25000 = 50000. Ratio = 10000:15000:25000 = 2:3:5.

If A and B invest $10,000 and $15,000 respectively, and C joins later with $25,000, what is the profit-sharing ratio after C joins?

If A and B invest $10,000 and $15,000 respectively, and C joins later with $25,000, what is the profit-sharing ratio after C joins?

Step 1: Identify the amounts invested by A, B, and C. A invests $10,000, B invests $15,000, and C invests $25,000.
Step 2: Calculate the total investment by adding the amounts: $10,000 + $15,000 + $25,000 = $50,000.
Step 3: Write down the individual investments: A = $10,000, B = $15,000, C = $25,000.
Step 4: To find the profit-sharing ratio, express each investment in relation to the total investment: A's share = $10,000, B's share = $15,000, C's share = $25,000.
Step 5: Simplify the ratio of investments: A:B:C = 10000:15000:25000.
Step 6: Divide each part of the ratio by the greatest common divisor (GCD) to simplify: 10000 ÷ 5000 = 2, 15000 ÷ 5000 = 3, 25000 ÷ 5000 = 5.
Step 7: Write the final profit-sharing ratio: A:B:C = 2:3:5.

Profit Sharing Ratio – The ratio in which profits are distributed among partners based on their investments.
Investment Calculation – Understanding how to calculate total investment and individual contributions.
Proportional Ratios – Converting individual investments into a simplified ratio for profit sharing.