Question

April invested $120,000 in a partnership with Lane, Jules, Ray, Thomas, and Peter. The total investment of all partners was $800,000. What percent of the business does April own?

a) 10%
b) 15%
c) 20%
d) 25%

Answer 1

April's ownership in the business is determined by dividing her investment by the total investment and converting to a percentage. After performing the calculation, it is found that April owns 15% of the business.

Step-by-step explanation:

To find out what percent of the business April owns, we need to divide April's investment by the total investment and then multiply by 100 to get the percentage. April invested $120,000 while the total investment was $800,000.

The calculation to find April's ownership percentage is:

(April's Investment / Total Investment) × 100 =
($120,000 / $800,000) × 100

First, divide April's investment by the total investment:

$120,000 / $800,000 = 0.15

Then, convert this to a percentage:

0.15 × 100 = 15%

Therefore, April owns 15% of the business. The correct answer is b) 15%.