Question

The 5000 that invested in Fund A returned a 3% profit. The amount that invested in Fund B returned a 10% profit. How much did she invest in Fund B, if both funds together returned a 5% profit?

Answer 1

The investment in  Fund B is $2000.

To understand the given question we first have to understand the logic of percentage and how it affect the return on Investment.

If an investment fund returns a profit on an investment then the profit is calculated by multiplying the investment with the profit(in decimal form).

For Example: If the investment is A and profit is x % then the profit is calculated by:

Profit =A×($\frac{x}{100}$)

Now in the given problem, let us consider the amount of investment into the Fund B be x.

Profit in Fund B=10%

Profit in Fund A is 3%.

Investment in Fund A=$5000

Total profit from both investments=3% of 5000+10% of x

$=\frac{3}{100}\times 5000 + \frac{10}{100}\times x\\ =150+0.1x$

Now the total investment=5000+x

The combined profit for both the Investments is 150+0.1x

But the combined profit is 5% for both investments.

profit=$5\% of(5000+x)$

$=\frac{5}{100}\times (5000+x)\\=0.05\times5000+0.05x\\=250+0.05x$

Now the profit is same, so if we equate both the expressions of profit we get a linear equation in x.

$\therefore 250+0.05x=150+0.1x\\or,250-150=0.1x-0.05x\\or,100=0.05x\\or,x=2000$

Thus we can conclude that she invested $2000 in the Fund B.

To learn more about Investment and Percentage :

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