Eric, george, and denzel have invested $400,000, $300,000, and $300,000, respectively, in a business venture. they have decided that they will divide the profits among themselves in the ratio of their respective investments. if their business makes a profit of $75,000, what would be eric’s share in the profit? a. $22,500 b. $30,000 c. $32,500 d. $45,000

Eric’s share in the profit is $30,000 ⇒ answer B

Step-by-step explanation:

* We will use the ratio to solve this problem

- At first lets find the ratio between their invested

∵ Eric has invested $400,000

∵ George has invested $300,000

∵ Denzel has invested $300.000

- To find the ratio divide each number by 100,000

∴ Eric : George : Denzel = 4 : 3 : 3

- They will divide the profits among themselves in the ratio of their

  respective investments

- The total profit will divided by the total of their ratios

∵ The total of the ratios = 4 + 3 + 3 = 10

∴  Eric : George : Denzel : Sum = 4 : 3 : 3 : 10

- That means the profit will divided into 10 equal parts

- Eric will take 4 parts, George will take 3 parts and Denzel will take

 3 parts

∵ The profit = $75,000

- Divide the profit by the sum of the ratio

∴ Each part of the profit = 75,000 ÷ 10 = $7,500

- Now lets find the share of each one

∴ The share of Eric = 4 × 7,500 = $30,000

∴ The share of George = 3 × 7,500 = $22,500

∴ The share of Denzel = 3 × 7,500 = $22,500

* Eric’s share in the profit is $30,000

# If you want to check your answer add the shares of them, the answer

  will be the total profit (30,000 + 22,500 + 22,500 = $75,000), and if

  you find the ratio between their shares it will be equal the ratio

  between their investments (divide each share by 7,500 to simplify

  them the answer will be 4 : 3 : 3)

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step-by-step explanation:

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step-by-step explanation: