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A and B invest in a business in the ratio 4:5. If the total profit is $45,000, h

Practice Questions

Q1
A and B invest in a business in the ratio 4:5. If the total profit is $45,000, how much does A receive?
  1. $20,000
  2. $18,000
  3. $15,000
  4. $25,000

Questions & Step-by-Step Solutions

A and B invest in a business in the ratio 4:5. If the total profit is $45,000, how much does A receive?
Correct Answer: $20,000
  • Step 1: Identify the ratio of investment between A and B, which is 4:5.
  • Step 2: Add the parts of the ratio together: 4 + 5 = 9 parts.
  • Step 3: Determine A's share of the total profit by using A's part of the ratio: A's part is 4.
  • Step 4: Calculate A's share of the total profit: (A's part / Total parts) * Total profit = (4/9) * 45000.
  • Step 5: Perform the calculation: 4/9 * 45000 = 20000.
  • Step 6: Conclude that A receives $20,000.
  • Ratio and Proportion – Understanding how to divide profits based on the ratio of investments.
  • Basic Arithmetic – Performing calculations involving addition and multiplication.
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