document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1088873>Question 1088873</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Alex and Jimmy entered into a business partnership in 1985.the total capital of the business was $27,000 which they agreed to contribute in the ratio 2:1 respectively. the annual profit was shared as follows: Alex was paid 5.5% of the total profit for his service as a manager. The remainder of the profit was shared in the ratio of their contributions to the capital. if Alex received $6,850 out of the total profit.<BR>\n" );
document.write( "1. what is the total profit of the year<BR>\n" );
document.write( "2. calculate Jimmy's share of the profit as a percentage of his initial contribution to the capital.<BR>\n" );
document.write( "3. if Alex had to pay 30% of the amount he received as tax, how much did he pay?? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #703255 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=703255\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the total amount invested = 27,000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex contributed 2 times the amount that jimmy contributed.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex contributed 2/3 * 27,000 = 18,000.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "jimmy contributed 1/3 * 27,000 = 9,000.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the annual profit was shared as follows:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex was paid 5.5% of the total profit for his service as a manager.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the remainder of the profit was shared in the ratio of their respective contributions.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex receives 6850 of the total profit.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this includes his share from his contribution to the total capital plus the amount he received from being a service manager.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "let x equal the total profit.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex take .055 * x for himself.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the rest of the profit is equal to (1 - .055) * x which is equal to .945 * x\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this is divided between them in the ratio of 2 parts for alex and 1 part for jimmy.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "2 parts plus 1 part = 3 parts.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex gets 2/3 of the remaiinng profit and jimmy gets 1/3 of the remaining profit.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex gets 2/3 * .945 * x = .63 * x.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "jimmy gets 1/3 * .945 * x = .315 * x.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the total that alex gets is .63 * x + .055 * x\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that's his share of the remaining profit plus his service manager fee.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "this is equal to 6850.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your equation is 6850 = .63 * x + .055 * x\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "combine like terms to get 6850 = .685 * x\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "solve for x to get x = 6850 / .685 = 10,000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that's the total profit for the year.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "to confirm:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "total profit for the year is 10,000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex gets 5.5% of this which is equal to 550.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the remainder is 10,000 minus 550 = 9,450\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "9,450 is divided between alex and jimmy in the ratio of 2 parts for alex and 1 part for jimmy.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "since alex gets 2 parts and jimmy gets 1 part, then the total number of parts must be equal to 3.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "divide 9450 by 3 to get 1 part = 3150.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "2 parts is therefore equal to 6300.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "total alex gets is 6300 + 550 = 6850.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "jimmy gets 3150.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "6850 + 3150 = 10,000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "formula checks out.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "solution is assumed to be good.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the questions with their solutions are shown below:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "1. what is the total profit of the year\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "total profit of the year is 10,000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "2. calculate Jimmy's share of the profit as a percentage of his initial contribution to the capital.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "jimmy's share of the profit is 3150.<BR>\n" );
document.write( "jimmy's initial contribution to the capital is 9,000.<BR>\n" );
document.write( "jimmy's share of the profit as a percentage of his initial contribution to the capital is 3150 / 9000 = .35 = 35%\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "3. if Alex had to pay 30% of the amount he received as tax, how much did he pay??\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "alex' share of the profit is 6850.<BR>\n" );
document.write( "if he had to pay 30% tax on this, then he had to pay .30 * 6850 = 2055 tax.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "i believe that answers your question.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "let me know if you have any further questions regarding it.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );