A and B invest in a business with amounts of $30,000 and $45,000 respectively. I

A and B invest in a business with amounts of $30,000 and $45,000 respectively. If they make a profit of $15,000, how much profit does A receive?

A and B invest in a business with amounts of $30,000 and $45,000 respectively. If they make a profit of $15,000, how much profit does A receive?

Correct Answer: $6,000

Step 1: Identify the amounts invested by A and B. A invests $30,000 and B invests $45,000.
Step 2: Find the total investment by adding A's and B's investments together. Total investment = $30,000 + $45,000 = $75,000.
Step 3: Determine the ratio of A's investment to B's investment. The ratio is 30000:45000, 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) * $15,000.
Step 6: Calculate A's share of the profit. A's share = (2/5) * $15,000 = $6,000.

Profit Sharing – Understanding how profits are distributed based on the ratio of investments.
Ratios – Calculating and simplifying ratios to determine shares in a partnership.
Fraction of Total Profit – Calculating an individual's share of total profit based on their investment ratio.