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3. Three partners; Ann, Barry and Conor invest money in a small business.
The amounts they invest are €10,000, €12,000 and €6,000 respectively.
At the end of the first year of trading the profits from the business are
€14,350. The profits are distributed in equal proportion to their
investments. How much does each partner receive?
Ratios are 10:12:6 or 5:6:3 (1.67:2:1)
Step 1: 5+6+3 = 14
Step 2: 14,350 ÷ 14 = 1,025
Step 3:
Ann: 5 x 1,025 = €5,125
Barry: 6 x 1,025 = €6,150
Conor: 3 x 1,025 = €3,075
Check: 5,125 + 6,150 + 3,075 = 14,350
Quicker method
Ann: 14,350 x (5/14) = €5,125
Barry: 14,350 x (6/14) = €6,150
Conor: 14,350 x (3/14) = €€3,075