8
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Pete and his partner Mike made a huge profit in their software business together this year and have decided to use $20,000 of the profit for a Christmas donation to their favorite charities. Using the investment ratio each of them contributed to starting the business, Pete invested the most with 4:1 ratio to Mike. How much money will Mike get to donate to his charity?
A
$4,000
Explaination
The $20,000 donation is to be shared between Pete and Mike in the ratio proportionate to their investments, which is 4 is to 1.
Pete's counterpart will be represented as 4/5, while Mike's counterpart will be 1/5, making a whole of 5/5.
Computing for Mike's counterpart to the total donation of $20,000:
$20,000 x $7990_w9_h37.png$ = $4,000
B $5,000
C $3,000
D $16,000
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