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