Question

Two investors are to share profits of $14,000 in the ratio 4:1. What is the amount of the smaller share?

Answer 1

The amount of smaller share is $ 2800

Solution:

Given that Two investors are to share profits of $14,000 in the ratio 4 : 1

To find: amount of the smaller share

Let the profit of first investor be "4a"

Let the profit of second investor be "1a"

Given that two investors are to share profits of $14,000

profit of first investor + profit of second investor = 14000

4a + 1a = 14000

5a = 14000

a = 2800

So the profit of first investor = 4a = 4(2800) = $ 11200

profit of second investor = 1a = 1(2800) = $ 2800

So the amount of smaller share is $ 2800