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A and B invest in a business in the ratio 1:4. If the total profit is $5000, how

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Question: A and B invest in a business in the ratio 1:4. If the total profit is $5000, how much does A receive?

Options:

  1. $1000
  2. $500
  3. $2000
  4. $1500

Correct Answer: $1000

Solution: 

Total parts = 1 + 4 = 5. A\'s share = (1/5) * 5000 = $1000.

A and B invest in a business in the ratio 1:4. If the total profit is $5000, how

Practice Questions

Q1
A and B invest in a business in the ratio 1:4. If the total profit is $5000, how much does A receive?
  1. $1000
  2. $500
  3. $2000
  4. $1500

Questions & Step-by-Step Solutions

A and B invest in a business in the ratio 1:4. If the total profit is $5000, how much does A receive?
  • Step 1: Identify the investment ratio of A and B, which is 1:4.
  • Step 2: Add the parts of the ratio together: 1 (A's part) + 4 (B's part) = 5 total parts.
  • Step 3: Determine A's share of the total profit by calculating A's part of the ratio: A's part is 1 out of 5 total parts.
  • Step 4: Calculate A's share of the profit: (1/5) * 5000 = 1000.
  • Step 5: Conclude that A receives $1000 from the total profit.
  • Ratio and Proportions – Understanding how to divide profits based on the ratio of investment.
  • Basic Arithmetic – Performing simple calculations to find shares of profit.
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