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
