Question

Three business partners, Kosgei, Kimani and Atieno contributed Ksh 1,750,000 towards an investment. Kosgei contributed 20% of the money. Kimani and Atieno contributed the remainder in the ratio 3:5 respectively. 

1.  
   • Calculate the amount of money Kimani contributed. (2 marks)  
   • Find the ratio of the contributions by the three partners. (2 marks)   
2. The money earned a compound interest at a rate of 8% per annum. After 3 years, the  partners withdrew the interest and donated 10% to a charitable organisation. The partners then shared the remainder in the ratio of their contributions.  
   Calculate the amount of money, to the nearest shilling, that each partner received. 

Answer 1

1. Ko :  Ki : At
   0.2: 0.3: 0.5
   Ki = 30 % of 1,750,000
   =Ksh. 525,000
   
   2:3:5
2. A =PRⁿwhere R = 1+r
   =1750000(1.08³)
   =2204496
   Shared amount=90% × 2204496
                             =1984046.4
   Kosgei=0.2 ×1984046.4
                 =Ksh. 396809
   Kimani=0.3 ×1984046.4
                      =Ksh. 595214
   Atieno=0.5 x1984046.4
                     =Ksh. 992023