223k views
4 votes
Xavier and Yolanda have original investments of $51,000 and $105,400, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $28,100 and $29,700, respectively; and the remainder to be divided equally. How much of the net income of $113,900 is allocated to Xavier

User Aremmell
by
3.7k points

1 Answer

1 vote

Answer:

The amount allocated to Xavier = $50,710

Step-by-step explanation:

The following information were given

Xavier's investment = $51,000

Yolanda's investment = $105,000

interest on original investment = 20% = 20/100 = 0.2

Next let us determine the individual calculations for Xavier and Yolanda as follows:

interest on Xavier's investment = 0.2 × 51,000 = $10,200

interest on Yolanda's investment = 0.2 × 105,400 = $21,080

Salary allowance for Xavier = $28,100

Salary allowance for Yolanda = $29,700

summing up their individual amounts:

particulars Xavier ($) Yolanda($)

interest on investment 10,200 21,080

salary allowances 28,100 29,700

Total 38,300 50,780

Therefore after adding interest and allowances the total for xavier and Yolanda = 38,300 + 50,780 = $89,080

Next we are told that a net income of $113,900 is to be shared, and after the interest and salary allowances ($89,080) have been removed, the remainder is divided equally. Hence the amount to be divided equally is determined as follows:

Amount to be shared equally = 113,900 - 89,080 = $24,820

Since it divided equally, they each get half of the amount, which is:

24,820 ÷ 2 = $12,410.

Finally, the total amount allocated to Xavier:

particulars Xavier ($) Yolanda($)

interest on investment 10,200 21,080

salary allowances 28,100 29,700

amount shared equally 12,410 12,410

Total 50,710 63,190

Therefore Xavier collects $50,710.

User Douglas Royds
by
4.8k points