3 partners inverst. 1 for $9,000, 1 for $7,000 and 1 for $4,000 Profits $4800.00 how much should each get proportionately?

Question

Three people invest different amounts of money. The total profits are $4800.00. The first person invests $9,000, the second one invests $7,000 and the third person invests $4,000. How much less does the one investing $9,000 receive if the profits are divided proportionately?

Answer 1

I believe you left out the words 'than if' in the last sentence of your question :-) 

 

To determine how much each person gets if the profits are divided proportionally:

 

 Total invested=$9000+$7000+$4000=$20000

 

X invested $9000 or 9000/20000 of total

9000/20000 reduces to 9/20 = .45 = 45% 

Y invested $7000 or 7000/20000 of total

7000/20000 reduces to 7/20 = .35 = 35%

Z invested $4000 or 4000/20000

4000/20000 reduces to 4/20 = 1/5 = .2 = 20%

 

So if the profits of $4800 are split proportionally you get (Profits * %invested)

X gets $2160

Y gets $1680

Z gets $960

 

If you split the profits equally

$4800 / 3 people = $1600

 

For X, the proportional total (2160) minus equal total (1600) is $560.

 

This is a type of problem you'll encounter a lot in life :)

 

Answer 2

Hey Karen -- total investment is 20k ... split up in 9/20ths, 7/20ths, and 4/20ths ...

1/20 is 4800/20 ... 480/2 ... 240 ==> 9: 2400-240 or 2160, 7: 2160-480 or 1680 ...

small guy gets 960 ... Best wishes, ma'am :)