Multiple choice

In the beginning of the year, Robin, Tyler and Albert started an IT consulting business with initial investment of \$175,000 in the ratio 3 : 2 : 5, respectively. They made a profit of \$87,500 by the end of the year and decided to split the profit in the same ratio as their individual initial investment. What would be the profit share for Tyler in dollars?

  1. $17,500
  2. $19,500
  3. $26,250
  4. $28,250
  5. $43,750
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A Correct answer
Explanation

The profit is split in the ratio 3:2:5. Total parts = 3+2+5 = 10. Tyler's share = (2/10) * 87500 = 17500.

AI explanation

The profit is shared in the same 3 to 2 to 5 ratio as the initial investment, meaning Tyler receives 2 parts out of the total 10 parts. Since the total profit is \$87,500, Tyler's share is calculated as 2/10 of 87500. Solving 87500 / 5 gives Tyler's share as \$17,500.

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