A and B invest in a business with A investing $3000 and B investing $5000. If th

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Question: A and B invest in a business with A investing $3000 and B investing $5000. If they incur a loss of $400, how much loss does A bear?

Options:

Correct Answer: $200

Solution:

Total investment = 3000 + 5000 = $8000. A\'s share of loss = (3000/8000) * 400 = $150.

A and B invest in a business with A investing $3000 and B investing $5000. If they incur a loss of $400, how much loss does A bear?

A and B invest in a business with A investing $3000 and B investing $5000. If they incur a loss of $400, how much loss does A bear?

Step 1: Identify the amount A invested, which is $3000.
Step 2: Identify the amount B invested, which is $5000.
Step 3: Calculate the total investment by adding A's and B's investments: 3000 + 5000 = 8000.
Step 4: Determine the total loss incurred, which is $400.
Step 5: Calculate A's share of the total investment: A's investment (3000) divided by total investment (8000). This gives 3000/8000.
Step 6: Multiply A's share of the investment by the total loss: (3000/8000) * 400.
Step 7: Calculate the result of the multiplication to find A's share of the loss: 150.

Proportional Loss Sharing – Understanding how losses are shared based on the proportion of investment.
Investment Ratios – Calculating the ratio of individual investments to total investments.