##### How much profits does X receive?

label Mathematics
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schedule 1 Day
account_balance_wallet \$5

Three individuals form a partnership and agree to divide the profits equally.  X invest \$4,500, Y invests \$4,500, and Z invests \$1,000.  If the profits are \$1,500, how much does X receive than if the profits were divided in proportion to the amount invested?

Apr 29th, 2015

X receives \$175 less when the profits are split equally than if they were divided in proportion to the amount invested.

Explanation:

Since each of the 3 participants are sharing the profits equally, they each receive one-third of \$1500 - so, they each get \$1500/3 = \$500

If the profits were divided in proportion to the amount invested, you can find the amount that X would get by taking the fraction he donated (this fraction is equal to the amount he donated divided by the total amount donated:

(\$4500)/(\$4500+\$4500+\$1000) = 4500/10000 = 9/20.

Since X donated 9/20 of the total, he would get 9/20 of the profits, which would be 9/20*1500 =\$675.

The difference between \$675 and \$500 is \$175.

Apr 29th, 2015

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Apr 29th, 2015
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Apr 29th, 2015
Oct 19th, 2017
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