ethan farhan and michael invested $427000 $671000 and $305000 in property respectively and they agreed to share the profit in the ratio of their investments. After few years, they sold the property for $1897500.
Find the amount of profit each of them reviewed.
Answers
Answer:
Ethan profit share = $150500
Farhan Profit share = $236500
Michael Profit Share = $107500
Step-by-step explanation:
Investments are Ethan, Farhan and Michael are $427000, $671000 and $305000 respectively.
Ratio of their investment =
427000 : 671000 : 305000
=427 : 671 : 305.
Total investment = 427000 + 671000 + 305000
= 1403000
Profit = Selling price - investment = 1897500 - 1403000 = $494500
This profit will be shared in the ratio of 427 : 671 : 305.
Ethan profit share = 427 * 494500 / 1403 = $150500
Farhan Profit share = 671 * 494500 / 1403 = $236500
Michael Profit Share = 305 * 494500 / 1403 = $107500
Answer:
$150500
$236500
$107500
Step-by-step explanation:
Ethan farhan and michael invested $427000 $671000 and $305000 in property respectively and they agreed to share the profit in the ratio of their investments. After few years, they sold the property for $1897500.
Find the amount of profit each of them reviewed.
Ethan Investment = $427000
Farhan Investment = $671000
Michael Investment = $305000
Total Investment = $427000 + $671000 + $305000 = $1403000
Profit = $1897500 - $1403000 = $494500
Profit Share = (investment / Total Investment) * Total Profit
Ethan Profit = ($427000 / $1403000) * $494500 = $150500
Farhan Profit = ($671000 / $1403000) * $494500 = $236500
Michael Profit = ($305000 / $1403000) * $494500 = $107500
Ethan , Farhan , Michael profit respectively $150500 , $236500 , $107500