Question

Milan invested his savings in two investment funds. the $4000 that he invested in fund a returned a 3% profit. the amount that he invested in fund b returned a 10% profit. how much did he invest in fund b, if both funds together returned a 8% profit?

Answer 1

Given:

                                Percent                Amount $

Fund A                 3%                          $4000

Fund B                  1%                          x

Total Funds        8%                          $4000 + x

 

Find:

Fund B Investment

 

Solution:

 

$4000 * .03 + .10 * x = .08% ($4000 + x)

We already know 3 rates and one amount invested

$4000 * .03 + .10 * x = .08% ($4000 + x)

Multiply them out:

120 + (0.10 * x) = 320 + 0.08x

Now, we combine like terms.

.10x – 0.08x = 320 – 120

.02x = 200

Isolate x

x = 200 / 0.02

Divide

x = $10,000

Checking:

($4000 * .03) + (.10 * 10,000) = .08% ($4000 + 10,000)

120 + 1000 = 320 + 800

1120 = 1120

Therefore, fund B has an investment of $10,000.