guerrero wrote:The majority owner of a business received 25% of the profit, with each of 4 partners receiving 25% of the remaining profit. If the majority owner and two of the owners combined to receive $62,500, how much profit did the business make?
A. $100,000
B. $125,000
C. $150,000
D. $200,000
E. $250,000
A
To determine what fraction of the profit was received by each person, plug in a value for the total profit.
Since the owner receives 1/4 of the total profit, and each partner receives 1/4 of the remainder, let the total profit = the product of the denominators = 4*4 = 16.
Amount received by the owner = (1/4)16 = 4.
Remaining profit = 16-4 = 12.
Amount received by each partner = (1/4)12 = 3.
Thus:
(Amount received by the majority owner and two partners)/(total profit) = (4+3+3)/16 = 10/16 = 5/8.
Since the actual amount received by the major owner and two partners = 62,500, we get:
5/8 = 62,500/x
5x = 8 * 62,500
x = 8 * 12,500 = 100,000.
The correct answer is
A.
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