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A and B started a business with investments of $10,000 and $15,000 respectively.
A and B started a business with investments of $10,000 and $15,000 respectively. What is the ratio of their profits after one year?
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Practice Questions
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Q1
A and B started a business with investments of $10,000 and $15,000 respectively. What is the ratio of their profits after one year?
2:3
3:2
5:3
3:5
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The ratio of their investments is 10000:15000 = 2:3. Therefore, the profit ratio is also 2:3.
Questions & Step-by-step Solutions
1 item
Q
Q: A and B started a business with investments of $10,000 and $15,000 respectively. What is the ratio of their profits after one year?
Solution:
The ratio of their investments is 10000:15000 = 2:3. Therefore, the profit ratio is also 2:3.
Steps: 6
Show Steps
Step 1: Identify the amount A invested, which is $10,000.
Step 2: Identify the amount B invested, which is $15,000.
Step 3: Write the investments as a ratio: A's investment to B's investment is 10000:15000.
Step 4: Simplify the ratio 10000:15000 by dividing both numbers by 5000.
Step 5: After simplification, the ratio becomes 2:3.
Step 6: Since profits are shared based on the investment ratio, the profit ratio will also be 2:3.
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