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 make a profit of $4000, how much does A receive?

Options:

Correct Answer: $1500

Solution:

Total investment = 3000 + 5000 = $8000. A\'s share = (3000/8000) * 4000 = $1500.

A and B invest in a business with A investing $3000 and B investing $5000. If they make a profit of $4000, how much does A receive?

A and B invest in a business with A investing $3000 and B investing $5000. If they make a profit of $4000, how much does A receive?

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 A's share of the total investment by dividing A's investment by the total investment: 3000 / 8000.
Step 5: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (3000 / 8000) * 4000.
Step 6: Simplify the calculation: (3000 / 8000) = 0.375, then 0.375 * 4000 = 1500.
Step 7: Conclude that A receives $1500 from the profit.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment.
Ratios – Calculating shares based on the ratio of individual investments to total investment.