A and B start a business with investments of $30,000 and $45,000 respectively. I

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What’s inside this PDF?

Question: A and B start a business with investments of $30,000 and $45,000 respectively. If they make a profit of $90,000, how much does A receive?

Options:

$30,000
$36,000
$40,000
$45,000

Correct Answer: $36,000

Solution:

A\'s share = (A\'s investment / Total investment) * Total profit = (30000 / 75000) * 90000 = $36,000.

A and B start a business with investments of $30,000 and $45,000 respectively. I

Practice Questions

A and B start a business with investments of $30,000 and $45,000 respectively. If they make a profit of $90,000, how much does A receive?

$30,000
$36,000
$40,000
$45,000

Questions & Step-by-Step Solutions

A and B start a business with investments of $30,000 and $45,000 respectively. If they make a profit of $90,000, how much does A receive?

Step 1: Identify A's investment amount, which is $30,000.
Step 2: Identify B's investment amount, which is $45,000.
Step 3: Calculate the total investment by adding A's and B's investments: $30,000 + $45,000 = $75,000.
Step 4: Identify the total profit made by the business, which is $90,000.
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: (30000 / 75000) * 90000.
Step 7: Simplify the fraction: 30000 / 75000 = 0.4.
Step 8: Multiply 0.4 by the total profit: 0.4 * 90000 = $36,000.
Step 9: Conclude that A receives $36,000 from the profit.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners in a business.
Ratios and Proportions – Applying ratios to determine individual shares from a total based on their respective contributions.
Basic Arithmetic – Performing calculations involving addition, division, and multiplication to find the final amounts.

A and B start a business with investments of $30,000 and $45,000 respectively. I

What’s inside this PDF?

A and B start a business with investments of $30,000 and $45,000 respectively. I

Practice Questions

Questions & Step-by-Step Solutions

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