ratio and how much profits earned?

Question

Jody, Grant, and Jeff invested $4,000, $7,000 and $5,000  into a small business. What was their ratio of the investment reduced to the lowest terms? And how much would each receive if profits were distributed according to this ratio and the total profit was $25,000? Round to the nearest dollar.

Answer 1

Ratio is Jody:Grant:Jeff=4:7:5

If their profits combined=$25,000, we need to divide this according to the ratios. To do this, sum the ratios: 16 then use the fractions 4/16=1/4, 7/16, 5/16 on $25,000.

Jody=25000/4=$6,250

Grant=$10,937.50

Jeff=$7,812.50

CHECK

Add these together: $25,000. OK!

Ratio check Jody/Grant=6250/10937.50=4/7; Grant/Jeff=10937.50/7812.5=7/5; Jody/Jeff=6250/7812.50=4/5. OK!