A and B invest in a business with A investing $7000 and B investing $3000. If th

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Question: A and B invest in a business with A investing $7000 and B investing $3000. If they make a profit of $5000, how much does B receive?

Options:

Correct Answer: $2500

Solution:

Total investment = 7000 + 3000 = 10000. B\'s share = (3000/10000) * 5000 = $1500.

A and B invest in a business with A investing $7000 and B investing $3000. If they make a profit of $5000, how much does B receive?

A and B invest in a business with A investing $7000 and B investing $3000. If they make a profit of $5000, how much does B receive?

Step 1: Identify the amount A invested, which is $7000.
Step 2: Identify the amount B invested, which is $3000.
Step 3: Calculate the total investment by adding A's and B's investments: 7000 + 3000 = 10000.
Step 4: Determine B's share of the total investment by dividing B's investment by the total investment: 3000 / 10000.
Step 5: Calculate B's share of the profit by multiplying B's share of the investment by the total profit: (3000 / 10000) * 5000.
Step 6: Simplify the calculation: (0.3) * 5000 = 1500.
Step 7: Conclude that B receives $1500 from the profit.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment made by each partner.
Fraction and Percentage Calculations – Calculating shares of profit using fractions derived from total investments.