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Profit on Investment

```
Date: 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/
```
Associated Topics:
Middle School Fractions

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