Three individuals form a partnership and agree to divid the profits equally. x invest $9000, y invest $7000 z invest $4000. how much much less does x receive than if the profists were divided in proportion to the amount invest
In the first sentence you state that the profits are to be divided equally.
At the end you state the profits are to be divided in proportion to their investment.
So which one is it ?
To find out how much less X receives compared to if the profits were divided proportionally to the amount invested, we first need to calculate the proportion of investment made by each partner.
The total investment made by X, Y, and Z is:
X = $9000
Y = $7000
Z = $4000
The total investment is:
Total Investment = X + Y + Z
Therefore, the total investment is:
Total Investment = $9000 + $7000 + $4000 = $20000
Now, let's calculate the share of each partner if the profits were divided in proportion to the amount invested.
The share of X is:
X's Share = (X's Investment / Total Investment) * Total Profits
The share of Y is:
Y's Share = (Y's Investment / Total Investment) * Total Profits
The share of Z is:
Z's Share = (Z's Investment / Total Investment) * Total Profits
Since the partners agreed to divide the profits equally, X's share in this case will be the same as Y's share and Z's share.
Now, let's calculate the share of X, Y, and Z if the profits were divided proportionally based on their investments.
X's Share = (9000 / 20000) * Total Profits
Y's Share = (7000 / 20000) * Total Profits
Z's Share = (4000 / 20000) * Total Profits
Since the total profits are divided equally among the three partners, we can set these three shares equal to each other.
(9000 / 20000) * Total Profits = (7000 / 20000) * Total Profits = (4000 / 20000) * Total Profits
Now we can solve for Total Profits:
(9000 / 20000) = (7000 / 20000) = (4000 / 20000)
This simplifies to:
0.45 = 0.35 = 0.20
So, the total profits will be the same regardless of how the profits are divided since the proportions are equal.
Therefore, X will not receive less if the profits were divided proportionally based on investments.