How much profits does X receive?

Mathematics
Tutor: None Selected Time limit: 1 Day

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

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Apr 29th, 2015
...
Apr 29th, 2015
Dec 6th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer