SOLUTION: jide and eze entered into a business partnership.the capital for the business was made of 2250000 from jide and 3150000 from eze.they agreed to the share of profit in ratio of thei

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: jide and eze entered into a business partnership.the capital for the business was made of 2250000 from jide and 3150000 from eze.they agreed to the share of profit in ratio of thei      Log On


   

Question 1131600: jide and eze entered into a business partnership.the capital for the business was made of 2250000 from jide and 3150000 from eze.they agreed to the share of profit in ratio of their contribution to the capital. jide invested his share of profit in 1997 at 21% per annum simple interest. jides share of the total profit in 1997 together with the interest earned on it in 5yrs was 3587500. calculate the total profit in 1997 and ezes share of the total profit in 1997 as a percentage of his initial contribution to the total capital.
Answer by greenestamps(13203) About Me  (Show Source):
You can put this solution on YOUR website!


The ratio of their contributions to the capital was 225:315 = 5:7. So Jide's share of the profit was 5/12 and Eze's was 7/12.

Let x be the amount of Jide's share of the profit. Invested at 21% simple interest for 5 years made its value 3587500.

x%281%2B5%280.21%29%29+=+3587500
2.05x+=+3587500
x+=+1750000

Jide's share of the profit was 1750000.

The ratio of Eze's share to Jide's share was 7:5:

1750000%2A%287%2F5%29+=+2450000

Eze's share of the profit was 2450000.

ANSWERS:

(1) the total profit was 1750000 + 2450000 = 4200000

(2) Eze's share of the profit, as a percentage of his initial contribution, was

2450000%2F3150000+=+7%2F9 = 77.78% to 2 decimal places