For our objective it is necessary to touch in a general way some important algebraic concepts like the one of reasons and proportions, when we refer to the word proportion the idea of harmony between the parts involved in certain activity of any nature comes to our mind, including of course certain investments of money made by two or more people in a business.
Therefore, we can say that in mathematics we call ratio the quotient between two different numbers of zero, and by having four different numbers of zero in a certain order and representing two ratios, where, the same will be proportional if both ratios are equal, that is, given a,b,c,d; if a/b = m and c/d=m, then a/b = c/d.
From the previous description, other important properties related to the different forms of proportions in relation to the reasons implemented in a certain task or area can be inferred, but in this case we will focus on the calculation of the values of a proportion for an adequate proportional distribution in a certain capital investment, as a company rule.
Proportional distribution, Company or business rule
In general terms we can express that when two or more people contribute or place a certain amount of money in a common business, what is generated there either profit or loss must be distributed proportionally among the members of that business or society, this is where various approaches are generated that are called problems of society or company, among which we can find the following approaches:
1.- That the people involved (partners) in the business contribute different capitals during the same period of time.
2.- That these partners contribute a similar amount of money or capital in a different period of time.
3.- In this case, the partners contribute both different capitals and in different periods of time.
In this opportunity we will focus in our first approach, that is, when the partners contribute different capitals in the same period or interval of time, and with it, both the gains and the losses for each partner are going to depend on the money or capital that each one of them has placed, that is to say, the distribution in this case will be directly proportional.
Three people managed to raise investment capital for a joint business, where they placed the following amounts respectively $500, $300 and $700. The investment of this capital generated a profit of $ 1200, so we would determine the distribution directly proportional to these partners, so we have:
x + y + z = 1200 $, therefore to determine the proportional gain for each we have:
As we could observe through the implementation of a series of equal reasons we managed to establish a proportional distribution in relation to the amount of money or capital contributed by each partner, where, the partner who placed $500 obtained from the total earnings an amount of $400, the second partner who placed $300 obtained from earnings $240 and the third partner who contributed $700 and with it the greatest amount of capital or money invested, corresponded to a proportional amount of that investment of $560, adding these three amounts gives $1200 the money earned by the invested capital.
It is always important to emphasize that mathematics is present in any of our activities and especially in the world of finance, as we saw in the previous example, where we implemented the conceptualization of reason and proportion with its algebraic formulations for the proportional distribution between the profits generated in the investment of three people in a common business, if this business had generated losses we proceed in the same way but the minus (-) in the total amount in losses.
The previous case related to our first approach, that is to say, the partners contributing different capitals in the same lapse of time in this investment and in fact generating in a proportional way the particular profits for each investor.
Until another opportunity my dear and appreciated readers.
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