Applying the ratio based on investment method,compute Taylor and Timmy's share of net income if Taylor invested $200,000 and Timmy invested $800,000.Net income was $75,000.

Question

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Taylor and Timmy's investments are in the ratio of 1:4 ($200,000:$800,000), so their share of net income will also be in this ratio. Therefore, Taylor gets 1/5 of $75,000, which is $15,000, and Timmy gets 4/5 of $75,000, which is $60,000.

Applying the Ratio Based on Investment Method,compute Taylor and Timmy's