A and B invest in a business with A investing $30,000 and B investing $45,000. I

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Question: A and B invest in a business with A investing $30,000 and B investing $45,000. If they make a profit of $15,000, how much does A get?

Options:

Correct Answer: $6,000

Solution:

The ratio of their investments is 30,000:45,000 = 2:3. A\'s share of profit = 2/5 * 15000 = $6,000.

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

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

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 the total investment. A's ratio = $30,000 / $75,000.
Step 4: Simplify the ratio. A's ratio = 30,000 / 75,000 = 2/5.
Step 5: Calculate A's share of the profit. Total profit = $15,000. A's share = (2/5) * $15,000.
Step 6: Perform the multiplication. A's share = $6,000.

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