Question

An investment firm invested in two companies last year. They invested $40,000 in company A and made a profit of 15%. They invested $10,000 in company B and made a profit of 22%

Answer 1

Answer:

A) $8200.

B) 16.4%

Step-by-step explanation:

Here is the complete question: An investment firm invested in two companies last year. They invested $40,000 in company A and made a profit of 15%. They invested $10,000 in company B and made a profit of 22%.

A) What is the investment firms total profit?

B) What is the percent profit of the total investment?

Given: Company A invested $40000 and made profit of 15%

           Company B invested $10000 and made profit of 22%

A) First lets find the profit of company A and B.

Company A= $\frac{15}{100} \times \ 40000= \ 6000.$

∴ Profit of company A is $6000.

Company B= $\frac{22}{100} \times \ 10000= \ 2200$

∴ Profit of company B is $2200.

Total profit= profit of company A+ profit of company B

⇒$Total\ profit= \ 6000+\ 2200$

∴ Total Profit= $\ 8200$

Hence, the total profit of investment firm is $8200.

B) Now finding the percentage of total profit made by firm.

Total investment by the firm= $\ 40000+\ 10000= \ 50000$

∴ Total investment done by the firm is $50000.

Percent of profit= $\frac{Total\ profit}{Total\ investment} \times 100$

⇒ Percent of profit= $\frac{8200}{50000} \times 100$

⇒ Percent of profit= $\frac{82}{5} = 16.4\%$

Hence, 16.4% is the percent profit of the total investment.