If A invests $4000 and B invests $6000 in a business, and they agree to share pr

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What’s inside this PDF?

Question: If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A\'s share of a profit of $2400?

Options:

$800
$960
$720
$600

Correct Answer: $960

Solution:

Total investment = 4000 + 6000 = 10000. A\'s share = (4000/10000) * 2400 = $960.

If A invests $4000 and B invests $6000 in a business, and they agree to share pr

Practice Questions

If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A's share of a profit of $2400?

$800
$960
$720
$600

Questions & Step-by-Step Solutions

If A invests $4000 and B invests $6000 in a business, and they agree to share profits in the ratio of their investments, what is A's share of a profit of $2400?

Step 1: Identify the amount A invested, which is $4000.
Step 2: Identify the amount B invested, which is $6000.
Step 3: Calculate the total investment by adding A's and B's investments: 4000 + 6000 = 10000.
Step 4: Determine A's share of the total investment by dividing A's investment by the total investment: 4000 / 10000.
Step 5: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (4000 / 10000) * 2400.
Step 6: Simplify the calculation: (0.4) * 2400 = 960.
Step 7: Conclude that A's share of the profit is $960.

Profit Sharing – Understanding how to divide profits based on the ratio of investments made by partners.
Ratios and Proportions – Applying ratios to calculate individual shares from a total based on contributions.
Basic Arithmetic – Performing addition and multiplication to find total investments and individual shares.

If A invests $4000 and B invests $6000 in a business, and they agree to share pr

What’s inside this PDF?

If A invests $4000 and B invests $6000 in a business, and they agree to share pr

Practice Questions

Questions & Step-by-Step Solutions

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