Question

3.2 Mpho, Naledi and Tsakani invest R800. R1000 and R1200 respectively, in their new small business. During the first month they make a profit of R750. 3.2.1 In what ratio should they divide the profit? (2) 3

Answer 1

The total value of the investment is R3000.

Dividing the profit by the total investment we have:

R750/ R3000= 0.25 =1 part

Multiplying each value by the value of one part we have:

Mpho R800*0.25= R200

Naledi R1000*0.25= R250

Tsakani R1200*0.25=R300

The ratio would be:

200: 250 : 300

4: 5: 6 (Dividing all values by 50 (common divisor))

3.2.1 They must share the profit in the ratio 4: 5: 6 (Mpho, Naledi, Tsakani)

3.2.2 From the previous calculation we see that Mpho should get R200, Naledi R250 and Tsakani R300.