Three individuals form a partnership and agree to divide the profits equally. X invests $9,000, Y invests $7,000, Z invests $4,000. If the profits are $4,800, how much less does X receive than if the profits were divided in proportion to the amount invested?
In order to figure out what proportion was invested by X, Y, and Z, we need to know the total, since the PROPORTION invested by X will be the AMOUNTinvested by X divided by the total AMOUNT invested by all three individuals. That total is 9,000 + 7,000 + 4,000 = 20,000, X's proportion of the total invested is 9,000/20,000 which is equal to 9/20 (in fractional form). So, X's amount of the profit will be (9/20) * 4800. = 9 * 240 = $2,160 if the profit is divided up in proportion to the amount invested. But, if the profit is divided equally, X only gets (1/3) * 4800 = $1600. That means that X gets 2160-1600 = $560 less if profit is divided equally. IMHO, this question might have been easier to answer if differently worded.