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Three business partners owned 100% of a certain company. When they sold the company, one partner received exactly 5/8 of the proceeds of the sale and the other partners shared the remainder of the proceeds. How much money did the partner who received the smallest amount of the proceeds receive from the sale? A) The partner who received the smallest amount from the sale received exactly 1/5 the amount received by the partner who received the second largest amount. B) The partner who received the second largest amount from the sale received half of the two million dollars received by the partner who received the largest amount.

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Answer:

The partner that received the largest amount got $2 million, the partner that received the second largest amount got $1 million, and the partner that received the lowest amount got $200,000

Explanation:

The partner that received the highest amount (I will call him A), got 5/8 of the proceeds.

The remaining 3/8 were divided in 1/6 for the partner that received the smallest amount (I will call him C) and 5/6 for the partner that received the second largest amount (I will call him B).

  • A got 5/8 or 10/16
  • B got 5/6 x 3/8 = 5/16
  • C got 1/6 x 3/8 = 1/16

A got $2 million

B got $1 million

C got $200,000

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