# How to determine capital ratio?

Nick and Sarah are partners. Their invested capital is \$30000 and \$45000. Respectively

a)what is their capital ratio
b)if the share of each in a net profit of \$18000
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DeveloperCommented:
To determine the investment capital ratio, you need to first determine the *total* inital capital investment, which is \$75,000.

Now  you need to determine the percentage that each invested of the total amount.

After that apply the the percentage of each to \$18,000 in order to determine their share.

-saige-

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