Mike and John are the partners in a local bar who invest in a ratio of 7:13, respectively. They started the business with $1.5M.
A) How much money did Mike invest? Answer:$ B) How much money did John invest? Answer:$ C) What percent of the business does Mike own? Answer: % (round to the nearest tenths of a percent)
To solve A) and B), divide the total amount of money by the sum of the parts of the ratio (7 + 13 = 20, in this case), and then multiply this by the person's portion of the ratio. This is because you are finding the worth of '1 part', and are then multiplying it to find how much money all their parts are worth together.
To solve C), take a person's portion of the ratio, divide it by the sum of the portions of the ratio and then multiply by 100% to get a percentage. In this case, 7/(7 + 13) * 100% = 7/20 * 100% = 0.35 * 100% = 35%.
