Question

our individuals form a business and create a contract to divide the profits equally among the four. Gary invests $11,000, Neil invests $4,000, Jill invests $5,000, and Steve invests $8,000. The profits at the end of the year are $5,600. How much less does Gary receive than if the profits were divided in relation to the amount invested by each owner?

Answer 1

Answer:

$800

Explanation:

The computation is shown below:

First we have to determine the total amount invested that is shown below:

= $11,000 + $4,000 + $5,000 + $8,000

= $28,000

And, the profit is $5,600

So, the percentage is

= $5,600 ÷ $28,000

= 0.2

Now the Gary share is

= $11,000 × 0.2

= $2,200

And, each share in profit

= $5,600 ÷ 4

= $1,400

Now the final amount is

= $2,200 - $1,400

= $800