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A and B invest in a business with A investing $8000 and B investing $12000. If t

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Question: A and B invest in a business with A investing $8000 and B investing $12000. If the total profit is $2000, what is B\'s share of the profit?

Options:

  1. $800
  2. $1200
  3. $1000
  4. $600

Correct Answer: $1200

Solution: 

Total investment = 8000 + 12000 = 20000. B\'s share = (12000/20000) * 2000 = $1200.

A and B invest in a business with A investing $8000 and B investing $12000. If t

Practice Questions

Q1
A and B invest in a business with A investing $8000 and B investing $12000. If the total profit is $2000, what is B's share of the profit?
  1. $800
  2. $1200
  3. $1000
  4. $600

Questions & Step-by-Step Solutions

A and B invest in a business with A investing $8000 and B investing $12000. If the total profit is $2000, what is B's share of the profit?
  • Step 1: Identify the amount A invested, which is $8000.
  • Step 2: Identify the amount B invested, which is $12000.
  • Step 3: Calculate the total investment by adding A's and B's investments: 8000 + 12000 = 20000.
  • Step 4: Determine B's share of the total investment by dividing B's investment by the total investment: 12000 / 20000.
  • Step 5: Calculate B's share of the profit by multiplying B's share of the investment by the total profit: (12000 / 20000) * 2000.
  • Step 6: Simplify the calculation: (0.6) * 2000 = 1200.
  • Step 7: Conclude that B's share of the profit is $1200.
  • Profit Sharing – Understanding how profits are distributed based on the proportion of investment made by each partner.
  • Ratios and Proportions – Calculating shares based on the ratio of individual investments to total investments.
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