Problema Solution
There are 3 partners in a company. MR. Rand has invested $20000.00; Mr. Walsh has invested $10000.00; and Mr. Gross has invested $5000. The profit for one year is $4200.00, which is divided among the partners in proportion of their investments. What is Mr. Gross's share of the profits?
Answer provided by our tutors
The profit for one year is $4200.00 is divided among the partners in proportion of their investments thus the proportion is
20,000 : 10,000 : 5,000
or if we divide by 5000 this can be written as
4 : 2 : 1
Mr. Rand's profit can be written as: 4x
Mr. Walsh's profit can be written as: 2x
Mr. Gross's profit can be written as: x
where x is the number we need to find
4x + 2x + x = 4200
by solving the equation we find
x = 600
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Mr. Gross's profit is $600.