Mrs. Jones owns 4/7 of the stock in a small business and Mrs.Brown owns the rest. Mrs. smith agrees to give $21,000 in exchange for 1/3 of the stock. The $21,000is to be divided between Mrs. jones and Mrs. Brown so that all three will now have equal share of stock. How much of the $21,000 should Mrs. Jones receive?

Question

Mrs. Jones owns 4/7 of the stock in a small business and Mrs.Brown owns the rest. Mrs. smith agrees to give $21,000 in exchange for 1/3 of the stock. The $21,000is to be divided between Mrs. jones and Mrs. Brown so that all three will now have equal share of stock. How much of the $21,000 should Mrs. Jones receive?

Answer 1

4/7 = 36/63

3/7 = 27/63
1/3 = 21/63

So, Jones sells 15/63 and Brown sells 6/63 for a total of 21/63, or 1/3.

So, the $21000 is divided
$15000 to Jones
$6000 to Brown

Answer 2

To find out how much of the $21,000 Mrs. Jones should receive, we need to determine the value of each party's share in the business before the transaction took place.

Let's start by finding Mrs. Jones' original share. We know that Mrs. Jones owns 4/7 of the stock, and Mrs. Brown owns the rest, which is 1 - 4/7 = 3/7 of the stock.

Next, let's determine the total value of all the shares before Mrs. Smith's investment. Since Mrs. Jones and Mrs. Brown each have a specific fraction of the stock, we can assign a value to the stock based on these fractions.

Let the total value of all shares be represented by X. Then, the value of Mrs. Jones' share is (4/7) * X, and the value of Mrs. Brown's share is (3/7) * X.

Now, after Mrs. Smith invests $21,000 for 1/3 of the total stock, the value of her share becomes (1/3) * X = $21,000.

To determine the total value of all shares, X = ($21,000) / (1/3) = ($21,000) * (3/1) = $63,000.

Now, we need to calculate Mrs. Jones' new share of the stock. Since the goal is for all three to have an equal share, each person should own 1/3 of the total stock.

The desired value of each person's share is (1/3) * X = (1/3) * $63,000 = $21,000.

Since Mrs. Jones initially owned (4/7) of the stock, her new share should be equal to the desired value of each person's share, which is $21,000.

Therefore, Mrs. Jones should receive the full amount of $21,000.

Answer 3

To determine how much of the $21,000 Mrs. Jones should receive, we first need to find out the total value of the stock in the business before the transaction.

We know that Mrs. Jones owns 4/7 of the stock and Mrs. Brown owns the rest, which is 1 - 4/7 = 3/7.

Now, we can assume that the initial value of the stock was divided into 7 equal parts, with Mrs. Jones owning 4 parts (4/7) and Mrs. Brown owning 3 parts (3/7).

To make things equal after the transaction, Mrs. Smith purchased 1/3 of the stock. Therefore, the total stock after the transaction would be divided into 7 + 3 = 10 equal parts.

Since Mrs. Smith bought one part, this means that the value of her purchase was 1/10 of the total stock value.

Now, let's calculate the value of the stock Mrs. Smith bought:

Value of stock Mrs. Smith bought = 1/10 * $21,000 = $2,100

Since all three owners will now have an equal share of the stock, this means that the value of each owner's share is $21,000 / 3 = $7,000.

To determine how much of the $21,000 Mrs. Jones should receive, we need to subtract the value of the stock Mrs. Smith bought from her original share:

Mrs. Jones' original share = 4/7 of the stock value = (4/7) * $7,000 = $4,000

Therefore, Mrs. Jones should receive $4,000 from the $21,000.