A and B invest in a business with investments of $3000 and $7000 respectively. I

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What’s inside this PDF?

Question: A and B invest in a business with investments of $3000 and $7000 respectively. If they incur a loss of $2000, how much loss does A bear?

Options:

$600
$800
$1200
$1000

Correct Answer: $800

Solution:

Total investment = 3000 + 7000 = $10000. A\'s share of loss = (3000/10000) * 2000 = $600.

A and B invest in a business with investments of $3000 and $7000 respectively. I

Practice Questions

A and B invest in a business with investments of $3000 and $7000 respectively. If they incur a loss of $2000, how much loss does A bear?

$600
$800
$1200
$1000

Questions & Step-by-Step Solutions

A and B invest in a business with investments of $3000 and $7000 respectively. If they incur a loss of $2000, 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 $7000.
Step 3: Calculate the total investment by adding A's and B's investments: $3000 + $7000 = $10000.
Step 4: Determine the total loss incurred, which is $2000.
Step 5: Calculate A's share of the total investment: A's investment ($3000) divided by total investment ($10000). This gives A's share as 3000/10000 = 0.3.
Step 6: Calculate A's share of the loss by multiplying A's share (0.3) by the total loss ($2000): 0.3 * 2000 = $600.
Step 7: Conclude that A bears a loss of $600.

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.

A and B invest in a business with investments of $3000 and $7000 respectively. I

What’s inside this PDF?

A and B invest in a business with investments of $3000 and $7000 respectively. I

Practice Questions

Questions & Step-by-Step Solutions

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