If A invests $40,000 and B invests $60,000 in a business, and they share the pro
Practice Questions
Q1
If A invests $40,000 and B invests $60,000 in a business, and they share the profit in the ratio of their investments, what will be A's share if the total profit is $30,000?
$10,000
$12,000
$15,000
$18,000
Questions & Step-by-Step Solutions
If A invests $40,000 and B invests $60,000 in a business, and they share the profit in the ratio of their investments, what will be A's share if the total profit is $30,000?
Correct Answer: $12,000
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 ratio of A's investment to the total investment: A's share = $40,000 / $100,000.
Step 5: Calculate A's share of the profit by multiplying the ratio by the total profit: A's share = ($40,000 / $100,000) * $30,000.
