please help

Question

Three friends, Andrew, Baxter and Cathy, A,B,C, joinly insured a commercial property  in the ratio of 12;8;5 repectively. how will an annual premium 0f $8000 be distributed among the three of them?

Answer 1

The individual ratios are:

       Andrew    12:25

       Baxter       8:25

       Cathy        5:25

 

$8000 is to be distributed. Is $8000/25 = 320 time the base unit of 25.

So the ratios are:

       Andrew      320*12 : 320*25    =   $3840 : $8000

        Baxter        320*8  : 320*25   =   $2560 : $8000

        Cathy         320*5 : 320*25   =     $1600 : $8000

                                                          -----------

                                                            $8000     (total)