Math Problem Statement
D, E, and F own a business jointly and share profits and losses in the same portion as their investments. How much of a profit of $4500 will each receive if their investments are $4000, $6000, and $5000 respectively?
Solution
To solve this problem, we will first calculate the total investment made by D, E, and F and then find their individual shares in the profit of $4500 based on their respective investment proportions.
Step 1: Total investment
D's investment: $4000
E's investment: $6000
F's investment: $5000
Total investment =
Step 2: Proportional share
Each person's share of the profit is proportional to their investment. Let us calculate the fraction of the total investment for each person.
- D's proportion =
- E's proportion =
- F's proportion =
Step 3: Share of the profit
Now, multiply each proportion by the total profit of $4500.
- D's share =
- E's share =
- F's share =
Final Answer:
- D receives $1200
- E receives $1800
- F receives $1500
Do you want a detailed explanation of the proportional method or further clarifications?
Related Questions:
- How is the profit-sharing ratio derived from investments?
- What if the total profit changes? How do the shares adjust?
- How would the calculation differ if one partner reinvests profits back into the business?
- What is the implication of unequal profit sharing in partnerships?
- Can the concept be extended to include a fourth partner? How?
Tip:
When calculating proportional shares, always confirm the sum of individual shares equals the total profit to verify your calculation.
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Math Problem Analysis
Mathematical Concepts
Ratios
Proportional Distribution
Basic Arithmetic
Formulas
Proportion formula: Individual Share = (Individual Investment / Total Investment) × Total Profit
Theorems
Proportionality Theorem
Suitable Grade Level
Grades 6-8
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