Question

5.8 Khomo and Peter bought a house for R575 000 as an investment. Khomo payed R245 000 and Peter payed the rest. They sold the house 5 years later and made a profit of R234 500.if they share the profit in the same ratio as their respective investments,how much profit will peter recieve​

Answer 1

133,380

Explanation:

Cost of house 575,000

Khomo paid 245,000

Peter paid 575,000 - 245,000 = 330,000

Ratio of Khomo to Peter = 245,000 : 330,000 = 49:66

Profit made = 234,500

Khomos share is 49/ 115 x 234,00 = 0.43 x 234,000 = 100,620

Peters share is 66/115 x 234,000 = =0.57 x 234,000 = 133,380