Profit on InvestmentDate: 4/16/96 at 9:0:13 From: Anonymous Subject: Re: Profit on Investment Ann, Bill, Cynthia, and Don respectively invest $2000, $3000, $8000, and $7000 in a joint business venture, agreeing to share the profits in the ratio of their investments. How much does each receive if the business earns a profit of $38000? Thank you, Brookey Date: 4/17/96 at 11:46:31 From: Doctor Jodi Subject: Re: ARITHMETIC It's only fair that the person who invests the most money receive the largest share of the profits. Let me give you an example so that I won't spoil this problem for you. Suppose I invest $2 and a friend invests $3 in a lemonade stand. We earn a profit of $8. How much does each of us get? Well, of the total investment ($5), I invested $2, or 2/5. My friend invested $3, or 3/5. So if we are sharing profits in proportion to the investments we made, then I get 2/5 of $8 (or 16/5, when you multiply, which is to say $3.20), while my friend gets 3/5 of $8 (24/5 or $4.80). Does this make sense? Do you see how to apply this method to your problem? Write us back if you need more help! -Doctor Jodi, The Math Forum Check out our web site! http://mathforum.org/dr.math/ |
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