A and B invest in a business with A investing $40,000 and B investing $60,000. I

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Question: A and B invest in a business with A investing $40,000 and B investing $60,000. If they make a profit of $30,000, how much profit does B get?

Options:

$12,000
$15,000
$18,000
$20,000

Correct Answer: $18,000

Solution:

Total investment = $40,000 + $60,000 = $100,000. B\'s share = 60000/100000 * 30000 = $18,000.

A and B invest in a business with A investing $40,000 and B investing $60,000. I

Practice Questions

A and B invest in a business with A investing $40,000 and B investing $60,000. If they make a profit of $30,000, how much profit does B get?

$12,000
$15,000
$18,000
$20,000

Questions & Step-by-Step Solutions

A and B invest in a business with A investing $40,000 and B investing $60,000. If they make a profit of $30,000, how much profit does B get?

Correct Answer: $18,000

Step 1: Identify the amount A invested, which is $40,000.
Step 2: Identify the amount B invested, which is $60,000.
Step 3: Calculate the total investment by adding A's and B's investments: $40,000 + $60,000 = $100,000.
Step 4: Determine the profit made by the business, which is $30,000.
Step 5: Calculate B's share of the total investment by dividing B's investment by the total investment: $60,000 / $100,000.
Step 6: Multiply B's share of the investment by the total profit to find out how much profit B gets: ($60,000 / $100,000) * $30,000.
Step 7: Calculate the result: 0.6 * $30,000 = $18,000.
Step 8: Conclude that B gets a profit of $18,000.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment.
Proportional Calculation – Calculating shares of profit based on total investment.

A and B invest in a business with A investing $40,000 and B investing $60,000. I

What’s inside this PDF?

A and B invest in a business with A investing $40,000 and B investing $60,000. I

Practice Questions

Questions & Step-by-Step Solutions

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