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21 Jan 2024, 07:15
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D
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Difficulty:
35%
(medium)
Question Stats:
81% (02:36) correct
19%
(03:31)
wrong
based on 37
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Bill and Warren entered into a partnership. Bill is a working partner and receives 10% of the total profit for his services. The remaining balance of the profit is then split between the two partners in the ratio of their investments. Last year the company made a total profit of $80,000, and Bill received $26,000. If Bill had invested $75,000 how much did Warren invest in the business?
A. $75,000
B. $100,000
C. $150,000
D. $225,000
E. $300,000
A. $75,000
B. $100,000
C. $150,000
D. $225,000
E. $300,000
21 Jan 2024, 07:44
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Bunuel
Profit made by the company last year = $80,000
Share of profit that Bill receives because he is a working partner = 10% of $80,000 = $8,000
The remaining profit i.e. $72,000 is then split between the two partners in the ratio of their investments.
Profit Bill earns because of his investment = $26,000 - $8,000 = $18,000
Profit Warren earns because of his investment = $72,000 - $18,000 = $54,000
\(\frac{\text{Profit that Bills earns because of his investment}}{\text{Profit that Warren earns because of his investment}} = \frac{\text{Amount Bill invests}}{\text{Amount Warren invests}}\)
\(\frac{18,000}{54,000} = \frac{\text{75,000}}{\text{Amount Warren invests}}\)
Amount Warren invests = \(\frac{75,000*54,000}{18,000} = 225,000 \)
Option D
21 Jan 2024, 23:19
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gmatophobia
I guess 16000 is a typo. It should be 18000 and your calculations are also done based on it.
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