Question

Four friends start a business and decide to share the profits evenly. Their initial investment in the business costs them a total of $7,400. After one year, the amount of money the business has earned is 10 times their initial investment. How much profit did each friend make from the business?

Answer 1

$16650

Explanation:

The initial investment in the business costs them a total of $7400.

And after one year the amount of money the business has earned is 10 times their initial investment i.e. $(7400 × 10) = $74000.

Therefore, the net profit will be $(74000 - 7400) = $66600.

So, the profit of each friend will be
`(66600)/(4)= 16650`$. ( Answer )