A and B start a business with investments of $12,000 and $18,000 respectively. I

A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $9,000, how much will A receive?

A and B start a business with investments of $12,000 and $18,000 respectively. If they make a profit of $9,000, how much will A receive?

Correct Answer: $3,600

Step 1: Identify the investments of A and B. A invests $12,000 and B invests $18,000.
Step 2: Find the total investment by adding A's and B's investments together. Total investment = $12,000 + $18,000 = $30,000.
Step 3: Determine the ratio of A's investment to B's investment. The ratio is 12000:18000, which simplifies to 2:3.
Step 4: Calculate the total parts in the ratio. A has 2 parts and B has 3 parts, so total parts = 2 + 3 = 5.
Step 5: Find A's share of the profit. A's share = (A's parts / total parts) * total profit = (2/5) * $9,000.
Step 6: Calculate A's share of the profit. A's share = 2/5 * 9000 = $3,600.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments made by partners.
Ratios – Calculating and simplifying ratios to determine the proportionate shares of profits.
Basic Arithmetic – Performing basic calculations to find shares of profit based on ratios.