SOLUTION: Three individuals form a partnership and agree to divide the profits equally. X invests 9,000, Y invests 7,000 and Z invests 4,000. If the profits are 4800, how much less does X re

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Question 509795: Three individuals form a partnership and agree to divide the profits equally. X invests 9,000, Y invests 7,000 and Z invests 4,000. If the profits are 4800, how much less does X receive than if the profits were divided in proportion to the amount invested? Answer is 560. How is this arrived at is my question. I need the mechanics of this solution. Please and thank you sincerely, Claudette
Found 2 solutions by ankor@dixie-net.com, MathTherapy:
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
Three individuals form a partnership and agree to divide the profits equally.
X invests 9,000, Y invests 7,000 and Z invests 4,000.
If the profits are 4800, how much less does X receive than if the profits were divided in proportion to the amount invested?
:
To divide the profits according to amt invested, we can use fractions with the denominator of 9+7+4 = 20, therefore:
:
x should get 9%2F20 of the profits
y should get 7%2F20
z should get 4%2F20
:
Assume the total profit was 4800 and divided equally
4800%2F3 = 1600 each
:
If the profits divide based on invested amts, then x: 9%2F20*4800 = $2160
:
to find the difference in the two methods of distribution:
2160 = 1600 = $560 difference

Answer by MathTherapy(10555) About Me  (Show Source):
You can put this solution on YOUR website!
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Three individuals form a partnership and agree to divide the profits equally. X invests 9,000, Y invests 7,000 and Z invests 4,000. If the profits are 4800, how much less does X receive than if the profits were divided in proportion to the amount invested? Answer is 560. How is this arrived at is my question. I need the mechanics of this solution. Please and thank you sincerely, Claudette


Since 3 individuals decide to invest and divide the profits equally, then each will get 1/3 of the profits

Since the profits are $4,800, then each will receive 4800+%2A+%281%2F3%29, or 4800%2F3, or $1,600

However, if they’d decided to divide the profits based on the proportion of each individual’s investment, then:

X would get 9000%2F%289000+%2B+7000+%2B+4000%29, or 9000%2F20000, or 9%2F20 of profits, or %289%2F20%29_of_4800, or $2,160

As seen X would get $2,160 – $1,600, or $highlight_green%28560%29 less than if the profits were divided according to the proportion of money he/she /it invested.

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