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You form a company with two other partners. You put in $5,000, and they each put in $3,000. You all get ownership proportional to the capital you put in. The company makes $20,000 in the first year and distributes profits in proportion to each partners ownership share. How much do you get?


a) $5,000.00
b) $9,000.00
c) $9,090.90
d) $12,237,85

Answer :

calculista

Answer:

option c) $9,090.90

Step-by-step explanation:

step 1

Find out your percentage of distribution of profits in fraction form

Divide your investment by total investment

[tex]\frac{5,000}{5,000+3,000+3,000}=\frac{5,000}{11,000}=\frac{5}{11}[/tex]

step 2

To find out how much you get, multiply your percentage of distribution by the profits

so

[tex]\frac{5}{11} (20,000)=\$9,090.90[/tex]

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