Math Problem Statement

Three partners invested a total of Php 960,000 in a business. The amounts they invested were 25%, 35%, and 40%, respectively, of the total amount. After a year, they divided the net profit according to the amount invested by each partner. The one with the smallest investment received a profit of Php 90,000. How much profit did the biggest investor receive?

Solution

The problem states that three partners invested a total of Php 960,000, with each investing different percentages of the total (25%, 35%, and 40%). The partner with the smallest investment (25%) received a profit of Php 90,000. We need to calculate the profit received by the largest investor (40%).

Let's proceed step by step:

Step 1: Determine the ratio of investments.

  • First partner (25%): 25100×960,000=240,000\frac{25}{100} \times 960,000 = 240,000
  • Second partner (35%): 35100×960,000=336,000\frac{35}{100} \times 960,000 = 336,000
  • Third partner (40%): 40100×960,000=384,000\frac{40}{100} \times 960,000 = 384,000

The profits are divided according to the investment proportions.

Step 2: Set up a proportion for profit distribution.

  • The smallest investor received Php 90,000. The ratio of the profits is the same as the ratio of their investments.
  • Let P1P_1, P2P_2, and P3P_3 be the profits for the first, second, and third investors respectively. Using the same ratio of investments, we have:

P1240,000=P2336,000=P3384,000\frac{P_1}{240,000} = \frac{P_2}{336,000} = \frac{P_3}{384,000}

Given that P1=90,000P_1 = 90,000, the ratio for the smallest investor is:

90,000240,000=38\frac{90,000}{240,000} = \frac{3}{8}

Step 3: Calculate the profit for the largest investor.

Using the same ratio, the profit for the largest investor is:

P3=38×384,000=144,000P_3 = \frac{3}{8} \times 384,000 = 144,000

Final Answer:

The largest investor received a profit of Php 144,000.

Do you want more details or have any other questions?


Here are some follow-up questions for better understanding:

  1. How is the profit-sharing ratio determined in investment situations?
  2. What are the other possible ways profits can be divided among investors?
  3. If the total profit had been distributed equally, how much would each partner receive?
  4. How would the profit distribution change if one partner withdrew part of their investment?
  5. What would happen if the business made a loss instead of a profit?

Tip: Always check the proportionality in investment-related problems to ensure the division of profits is fair based on the input.

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Math Problem Analysis

Mathematical Concepts

Proportions
Ratios
Percentages

Formulas

Profit distribution ratio: Profit ∝ Investment

Theorems

Proportionality theorem: Profit is divided based on investment proportions

Suitable Grade Level

Grade 12 or early college (Business Mathematics)