Three individuals form a partnership and agree to divide the profits equally. X invests $4,500, Y invests $3,500 and Z invests $2,000. If the profits are $1,500, how much less does X receive than if the profits were divided in proportion to the amount invested?
Divided proportionally,
9x+7x+4x=1500
x=75
so X:Y:Z = 675:525:300
So, 675-500 = 175 less
Total invested = 10,000
X = 4500/10000 = 45%
y = 3500/10000 = 35%
z = 2500/10000 = 255
1500 profits equally + 500 each
As percentage of investment
X = 45% X 1500 = 675
675 - 500 = 175 LESS
To find out how much less X receives compared to if the profits were divided in proportion to the amount invested, let's calculate the proportion of profit each person would receive based on their investment:
Total investment = $4,500 + $3,500 + $2,000 = $10,000
X's proportion of profit = X's investment / Total investment = $4,500 / $10,000 = 0.45
Y's proportion of profit = Y's investment / Total investment = $3,500 / $10,000 = 0.35
Z's proportion of profit = Z's investment / Total investment = $2,000 / $10,000 = 0.2
Now, let's calculate the amount X would receive if the profits were divided in proportion to the amount invested:
X's share = X's proportion of profit * Total profit = 0.45 * $1,500 = $675
The actual amount X receives is $1,500 / 3 = $500.
Therefore, X receives $675 - $500 = $175 less than if the profits were divided in proportion to the amount invested.
To find out how much less X receives compared to if the profits were divided in proportion to the amount invested, we first need to determine the proportion invested by each partner.
The total amount invested is the sum of the individual investments: $4,500 + $3,500 + $2,000 = $10,000.
To calculate the proportion invested by each partner, divide their individual investments by the total investment:
X's proportion = $4,500 / $10,000 = 45%
Y's proportion = $3,500 / $10,000 = 35%
Z's proportion = $2,000 / $10,000 = 20%
Now, let's calculate how much X would receive if the profits were divided in proportion to the amount invested:
X's share = X's proportion * total profit = 45% * $1,500 = $675
Since X's share would be $675 if the profits were divided in proportion to the amount invested, and the equal division gives each partner $1,500 / 3 = $500, we can calculate the difference:
Difference = X's share - Equal share = $675 - $500 = $175
Therefore, X receives $175 less than if the profits were divided in proportion to the amount invested.