Question

Three businessman decide to open up their own company. They agree to distribute the
yearly profits made in the same ratio as their initial investments. They invest R 50 000,
R 75 000 and R 25 000, respectively. The profit made by the company in the first year is
R 600 000.
(a) Express the ratio of the initial investments in simplest form.
(b) How much will each businessman receive by way of profit?

Answer 1

• Given:- Three businessman decide to open up their own company. They agree to distribute the

yearly profits made in the same ratio as their initial investments. They invest R 50 000,R 75 000 and R 25 000, respectively. The profit made by the company in the first year is

R 600 000.

• To find:- (a) Express the ratio of the initial investments in simplest form.

(b) How much will each businessman receive by way of profit

• Solution:-

a) According to the question

They invest R 50 000,R 75 000 and R 25 000, respectively,

so the ration of investment is 50000:750000:25000= 2:3:1

b) According to the question,the profit is

each businessman will receive by way of profit is 600000

so they will receive profit (600000×2/6),(600000×3/6),(600000×2/6)= 200000,300000,100000 rupees respectively.