Question

Mr. Snow paid $4,330 for two investments. On one of them, he gained 12%, and on the other he lost 5%. If his net gain was $4581, what was the amount of each investment?

Answer 1

EXPLANATION

Given that Mr Snow paid $4,330 for the two investments, and he gained 12%, and on the other he lost 5%, and if his net gain was $251, the amount of each investment can be obtained by applying the following equations:

(1) x + y = $4,330 [Total Investment]

Considering that we lost 5% we will have 95% of the investment and 112% on the other one.

(2) 1.12*x + 0.95y = 4,581

Now, we have a system of equations, isolating y in (1):

y = 4,330 - x

Plugging in y = 4,330 - x into (2):

1.12x + 0.95(4,330 - x) = 4,581

Applying the distributive property:

1.12x + 4,113.5 -0.95x = 4,581

Adding like terms:

0.17x + 4,113.5 = 4,581

Subtracting -4,113.5 to both sides:

0.17x = 4,581 - 4,113.5

Subtracting numbers:

0.17x = 467.5

Dividing both sides by 0.17:

x = 2,750

Substituting in (1):

2,750 + y = $4,330

Subtracting -2,750 to both sides:

y = 4330 - 2750

Subtracting numbers:

y = 1580

In conclusion, the amount of each investment are the following:

First Investment = $2,750

Second Investment = $1,580