hello everyone i need help w the qns below
andy starts a business with $ 168 000 as capital. six months later,, billy joins andy with a capital of $ 144 000. one month after that,, calvin joins them w a capital of $ 324 000. at the end of the first yr,, they made a profit of $ 40,,000. how much do andy, billy and calvin get if their shares are in proportion of their investments ???
Sorry, read wrongly and did not factor in the time period they stayed invested.
Profit ∝ Investment (Profit is directly proportional to investment)
Investment = Money (put in) × Time (invested)
Note that when we call say “Investment”, we are not simply referring how much money was put in. We are also considering how long that money has been added to the company’s capital.
Andy’s Investment = 168 000 × 12 = 2 016 000
Billy’s Investment = 144 000 × 6 = 864 000
Calvin’s Investment = 324 000 × 5 = 1 620 000
Ratio of profit share
A : B : C
2016 : 864 : 1620
Total units: 4500
Andy’s share: 2016/4500 × 40 000 = $17 920
Billy’s share: 864/4500 × 40 000 = $7 680
Calvin’s investment: 1620/4500 × 40 000 = $14 400
Mazda12345
thanks !😺
Mazda12345
hi,, it seems like the answer sheet says that the ans are ::
andy- $17920
billy- $7680
calvin- $14400
could u double check again☺️thank u xx
