Question

11. Steve and Elizabeth decide to become partners in a children's cooking school. They need $80,000 for the franchise. They invest in a 3:4 ratio, respectively. About what percent of the business is owned by Elizabeth ?

a. 34%
b. 43%
c. 57%
d. 80%

Answer 1

57

Explanation:

The total ratio representing the investment made by Steve and Elizabeth is 3 + 4 = 7.

Let's calculate the individual investment made by each person:

Steve's investment = (3/7) x $80,000 = $34,285.71Elizabeth's investment = (4/7) x $80,000 = $45,714.29The percentage of the business owned by Elizabeth can be calculated by dividing her investment by the total investment and then multiplying by 100:

Percentage owned by Elizabeth = (Elizabeth's investment / Total investment) x 100Percentage owned by Elizabeth = ($45,714.29 / $80,000) x 100Percentage owned by Elizabeth = 57.14%

Therefore, Elizabeth owns about 57% of the business, which is option (c).