A and B invest in a business with investments of $15,000 and $25,000 respectivel

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What’s inside this PDF?

Question: A and B invest in a business with investments of $15,000 and $25,000 respectively. If the total profit is $20,000, how much does A receive?

Options:

$6,000
$8,000
$10,000
$12,000

Correct Answer: $8,000

Solution:

Investment ratio = 15000:25000 = 3:5. A\'s share of profit = (3/8) * 20000 = $7,500.

A and B invest in a business with investments of $15,000 and $25,000 respectivel

Practice Questions

A and B invest in a business with investments of $15,000 and $25,000 respectively. If the total profit is $20,000, how much does A receive?

$6,000
$8,000
$10,000
$12,000

Questions & Step-by-Step Solutions

A and B invest in a business with investments of $15,000 and $25,000 respectively. If the total profit is $20,000, how much does A receive?

Correct Answer: $7,500

Step 1: Identify the investments of A and B. A invests $15,000 and B invests $25,000.
Step 2: Calculate the total investment by adding A's and B's investments together: $15,000 + $25,000 = $40,000.
Step 3: Determine the ratio of A's investment to the total investment. A's investment is $15,000, so the ratio is 15000:40000.
Step 4: Simplify the ratio 15000:40000. Divide both numbers by 5000 to get 3:8.
Step 5: Calculate A's share of the total profit. The total profit is $20,000. A's share is (3/8) of $20,000.
Step 6: Perform the calculation: (3/8) * 20000 = 7500.
Step 7: Conclude that A receives $7,500 from the total profit.

Investment Ratio – Understanding how to calculate the ratio of investments made by different parties.
Profit Sharing – Calculating each party's share of the total profit based on their investment ratio.

A and B invest in a business with investments of $15,000 and $25,000 respectivel

What’s inside this PDF?

A and B invest in a business with investments of $15,000 and $25,000 respectivel

Practice Questions

Questions & Step-by-Step Solutions

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