A and B invest in a business with A investing $5000 and B investing $15000. If t

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Question: A and B invest in a business with A investing $5000 and B investing $15000. If they make a profit of $6000, how much does A get?

Options:

Correct Answer: $2000

Solution:

Total investment = 5000 + 15000 = 20000. A\'s share = (5000/20000) * 6000 = $1500.

A and B invest in a business with A investing $5000 and B investing $15000. If they make a profit of $6000, how much does A get?

A and B invest in a business with A investing $5000 and B investing $15000. If they make a profit of $6000, how much does A get?

Step 1: Identify the amount A invested, which is $5000.
Step 2: Identify the amount B invested, which is $15000.
Step 3: Calculate the total investment by adding A's and B's investments: 5000 + 15000 = 20000.
Step 4: Determine A's share of the total investment by dividing A's investment by the total investment: 5000 / 20000.
Step 5: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (5000 / 20000) * 6000.
Step 6: Simplify the calculation: (1/4) * 6000 = 1500.
Step 7: Conclude that A gets $1500 from the profit.

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