If A invests $3000 and B invests $7000 in a business, and they share the profit

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What’s inside this PDF?

Question: If A invests $3000 and B invests $7000 in a business, and they share the profit in the ratio of their investments, what is A\'s share of a $5000 profit?

Options:

$1250
$1500
$1750
$2000

Correct Answer: $1500

Solution:

Total investment = 3000 + 7000 = 10000. A\'s share = (3000/10000) * 5000 = $1500.

If A invests $3000 and B invests $7000 in a business, and they share the profit

Practice Questions

If A invests $3000 and B invests $7000 in a business, and they share the profit in the ratio of their investments, what is A's share of a $5000 profit?

$1250
$1500
$1750
$2000

Questions & Step-by-Step Solutions

If A invests $3000 and B invests $7000 in a business, and they share the profit in the ratio of their investments, what is A's share of a $5000 profit?

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 A's share of the total investment by dividing A's investment by the total investment: 3000 / 10000.
Step 5: Calculate A's share of the profit by multiplying A's share of the investment by the total profit: (3000 / 10000) * 5000.
Step 6: Simplify the calculation: (0.3) * 5000 = 1500.
Step 7: Conclude that A's share of the $5000 profit is $1500.

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

If A invests $3000 and B invests $7000 in a business, and they share the profit

What’s inside this PDF?

If A invests $3000 and B invests $7000 in a business, and they share the profit

Practice Questions

Questions & Step-by-Step Solutions

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