SOLUTION: a).the ratio of James to John's earning was 4:3. Jame's earning rose to kshs. 7200 after an increase of 10%. calculate the percentage increase in John's earnings given that the sum

Algebra ->  Finance -> SOLUTION: a).the ratio of James to John's earning was 4:3. Jame's earning rose to kshs. 7200 after an increase of 10%. calculate the percentage increase in John's earnings given that the sum      Log On


   

Question 1185945: a).the ratio of James to John's earning was 4:3. Jame's earning rose to kshs. 7200 after an increase of 10%. calculate the percentage increase in John's earnings given that the sum of their new earnings was kshs. 15600
b).James and John contributed all the new earnings to buy maize at kshs. 175 per bag. The maize was ten sold at kshs. 1762.50 per bag. They all shared all the money from the sales in the ratio of contributions. Calculate the amount James received
Answer by CPhill(1959) About Me  (Show Source):
You can put this solution on YOUR website!
Here's how to solve this problem:
**a) Percentage increase in John's earnings:**
1. **Find James' initial earnings:** James' earnings increased by 10% to 7200 kshs. Let his initial earnings be 'x'.
x + 0.10x = 7200
1.10x = 7200
x = 7200 / 1.10 = 6545.45 kshs (approximately)
2. **Find John's initial earnings:** The ratio of James' to John's earnings was 4:3.
John's initial earnings = (3/4) * 6545.45 = 4909.09 kshs (approximately)
3. **Find John's new earnings:** The sum of their new earnings is 15600 kshs.
John's new earnings = 15600 - 7200 = 8400 kshs
4. **Calculate the percentage increase in John's earnings:**
Percentage increase = [(New earnings - Initial earnings) / Initial earnings] * 100
Percentage increase = [(8400 - 4909.09) / 4909.09] * 100
Percentage increase ≈ 71.1%
**b) James' share of the sales money:**
1. **Calculate the total amount contributed:** They contributed all their new earnings, which sum to 15600 kshs.
2. **Calculate the number of bags of maize purchased:**
Number of bags = Total amount contributed / Cost per bag
Number of bags = 15600 / 175 = 89.14 bags (approximately). Since you can't buy fractions of bags, we'll assume they bought 89 bags.
3. **Calculate the total revenue from maize sales:**
Total revenue = Number of bags * Selling price per bag
Total revenue = 89 * 1762.50 = 156862.50 kshs
4. **Calculate the profit:**
Profit = Total revenue - Total cost
Profit = 156862.50 - 15600 = 862.50 kshs
5. **Calculate James' share of the sales money:** The sales money includes the return of their initial contribution plus the profit. James' share is proportional to his contribution.
James' share = (James' new earnings / Total new earnings) * Total revenue
James' share = (7200 / 15600) * 156862.50
James' share ≈ 7235.38 kshs
**Therefore:**
* **a)** John's earnings increased by approximately 71.1%.
* **b)** James received approximately 7235.38 kshs from the maize sales.