A and B invest in a business in the ratio 4:5. If A's profit is $8,000, what is

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Question: A and B invest in a business in the ratio 4:5. If A\'s profit is $8,000, what is B\'s profit?

Options:

Correct Answer: $10,000

Solution:

Profit ratio = 4:5. If A\'s profit is $8,000, then B\'s profit = (5/4) * 8000 = $10,000.

A and B invest in a business in the ratio 4:5. If A's profit is $8,000, what is B's profit?

A and B invest in a business in the ratio 4:5. If A's profit is $8,000, what is B's profit?

Correct Answer: $10,000

Step 1: Understand the profit ratio between A and B, which is 4:5.
Step 2: Identify A's profit, which is given as $8,000.
Step 3: Set up the relationship between A's and B's profits using the ratio. Since A's part is 4, and B's part is 5, we can express B's profit in terms of A's profit.
Step 4: Calculate B's profit using the formula: B's profit = (B's ratio / A's ratio) * A's profit.
Step 5: Substitute the values into the formula: B's profit = (5/4) * 8000.
Step 6: Perform the calculation: B's profit = 5 * 8000 / 4 = 10,000.
Step 7: Conclude that B's profit is $10,000.

Profit Sharing Ratio – Understanding how profits are distributed based on the investment ratio between partners.
Proportional Calculation – Calculating one partner's profit based on the known profit of another partner using their investment ratio.