Question

Ethan, Farhan and Michael invested $427 000, $671 000 and $305 000 in a property respectively and they agreed to share the profit in the ratio of their investments. After a few years, they sold the property for $1 897 500. Find the amount of profit each of them received.

Answer 1

Answer:

Step-by-step explanation:

Total amount invested = 427000 + 671000 + 305000 = 1403000

Ratio of their investment = 427000:671000:305000

=7 : 11 : 5

Profit earned = 1897500-1403000 = 494500

Ethan's profit = 7/23 × 494500= 150500

Farhan's share = 11/23 × 494500= 236500

Michael's share = 5/23 × 494500= 107500

Answer 2

The profit of Ethan, Farhan and Michael are $ 577500, $ 907500 and $ 412500 respectively.

Step-by-step explanation:

Given,

Investment of,

Ethan =  $427,000,

Farhan =  $671,000

Michael = $305,000,

Time for each of them = 1 year,

Since, Profit is jointly proportional to investment and time.

Thus, the ratio of their profits = 427,000 × 1 : 671,000 × 1 : 305,000 × 1

= 7 : 11 : 5

Let Ethan's share = 7x, Farhan's share = 11x and Michael's share = 5x,

Where, x is any positive real number,

Total profit = 7x + 11x + 5x = 23x,

According to the question,

23x = 1897500

$\implies x =\frac{1897500}{23}=82500$

Hence,  Ethan's share = 7(82500) = $ 577500,

Farhan's share = 11(82500)=$ 907500,

Michael's share = 5(82500)=$ 412500,

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