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A, B, and C invest in a business in the ratio 2:3:5. If the total profit is $10,

Practice Questions

Q1
A, B, and C invest in a business in the ratio 2:3:5. If the total profit is $10,000, how much does C receive?
  1. $4,000
  2. $5,000
  3. $6,000
  4. $7,000

Questions & Step-by-Step Solutions

A, B, and C invest in a business in the ratio 2:3:5. If the total profit is $10,000, how much does C receive?
Correct Answer: $5,000
  • Step 1: Identify the investment ratio of A, B, and C, which is 2:3:5.
  • Step 2: Add the parts of the ratio together: 2 + 3 + 5 = 10.
  • Step 3: Determine C's part of the ratio, which is 5.
  • Step 4: Calculate C's share of the total profit by using the formula: (C's part / Total parts) * Total profit.
  • Step 5: Substitute the values into the formula: (5 / 10) * 10000.
  • Step 6: Simplify the calculation: 0.5 * 10000 = 5000.
  • Step 7: Conclude that C receives $5,000.
  • Ratio and Proportion – Understanding how to divide a total based on given ratios.
  • Profit Sharing – Calculating individual shares from a total profit based on investment ratios.
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