Question

Appiah and Bekha invested #25,500 and #35,500 respectively in a business. They made profit of #62,000 at the end of the year. 20% of the profit was shared equally between them while the remaining was shared on their ratio of their investment. Calculate Appiah's share of profit.

Answer 1

Appiah's share of profit = (25,500 / (25,500 + 35,500)) x (62,000 - (62,000 x 0.2))

Appiah's share of profit = (25,500 / 61,000) x 49,600

Appiah's share of profit = 25,844.75