Subjects business mathematics

Profit Sharing 2Fae99

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Profit Sharing 2Fae99


1. **Problem:** Three people invested Rs. 900, Rs. 600, and Rs. 300 in a business. How should they share a profit of Rs. 900? 2. **Formula:** Profit is shared in the ratio of investments. If investments are $I_1$, $I_2$, $I_3$ and total profit is $P$, then each share is: $$\text{Share}_i = \frac{I_i}{I_1 + I_2 + I_3} \times P$$ 3. **Calculate total investment:** $$900 + 600 + 300 = 1800$$ 4. **Calculate each person's share:** - First person: $$\frac{900}{1800} \times 900 = \frac{1}{2} \times 900 = 450$$ - Second person: $$\frac{600}{1800} \times 900 = \frac{1}{3} \times 900 = 300$$ - Third person: $$\frac{300}{1800} \times 900 = \frac{1}{6} \times 900 = 150$$ 5. **Answer:** The profit should be shared as Rs. 450, Rs. 300, and Rs. 150 respectively.