If A invests $2000 and B invests $3000 in a business, and they agree to share pr

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What’s inside this PDF?

Question: If A invests $2000 and B invests $3000 in a business, and they agree to share profits in the ratio of their investments, what will be A\'s share of a $500 profit?

Options:

$200
$300
$250
$150

Correct Answer: $200

Solution:

Total investment = 2000 + 3000 = 5000. A\'s share = (2000/5000) * 500 = $200.

If A invests $2000 and B invests $3000 in a business, and they agree to share pr

Practice Questions

If A invests $2000 and B invests $3000 in a business, and they agree to share profits in the ratio of their investments, what will be A's share of a $500 profit?

$200
$300
$250
$150

Questions & Step-by-Step Solutions

If A invests $2000 and B invests $3000 in a business, and they agree to share profits in the ratio of their investments, what will be A's share of a $500 profit?

Step 1: Identify the amount A invested, which is $2000.
Step 2: Identify the amount B invested, which is $3000.
Step 3: Calculate the total investment by adding A's and B's investments: 2000 + 3000 = 5000.
Step 4: Determine A's share of the total investment by dividing A's investment by the total investment: 2000 / 5000.
Step 5: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (2000 / 5000) * 500.
Step 6: Simplify the calculation: (2000 / 5000) = 0.4, then 0.4 * 500 = 200.
Step 7: Conclude that A's share of the $500 profit is $200.

Profit Sharing – Understanding how to calculate profit shares based on investment ratios.
Ratios – Applying ratios to determine individual shares from a total profit.
Basic Arithmetic – Performing addition and multiplication to solve for shares.

If A invests $2000 and B invests $3000 in a business, and they agree to share pr

What’s inside this PDF?

If A invests $2000 and B invests $3000 in a business, and they agree to share pr

Practice Questions

Questions & Step-by-Step Solutions

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