Question

Boris invested his savings in two investment funds. The $12,000 that he invested in fund a returned a 6% profit the amount that he invested in fund b returned at 2% profit how much did he invest in Fund b if both funds together returned a 5%

Answer 1

Answer:

$4000

Step-by-step explanation:

Let B represent amount invested in account 'b'.  

We have been given that an amount of $12,000 that Boris invested in fund a returned a 6% profit.

So the profit earned from fund 'a' would be $12,000\times\frac{6}{100}=12,000(0.06)$.

We are also told that the amount that he invested in fund b returned at 2% profit. So the profit earned from fund 'b' would be $B\times\frac{2}{100}=B(0.02)=0.02B$.

Further, both funds together returned a 5%. We can represent this information as:

$(12,000+B)\times\frac{5}{100}=0.05(12,000+B)$

Now, we will equate profit earned from account 'a' and 'b' with profit earned from both accounts as:

$12,000(0.06)+0.02B=0.05(12,000+B)$

$720+0.02B=600+0.05B$

$600+0.05B=720+0.02B$

$600-600+0.05B=720-600+0.02B$

$0.05B=120+0.02B$

$0.05B-0.02B=120+0.02B-0.02B$

$0.03B=120$

$\frac{0.03B}{0.03}=\frac{120}{0.03}$

$B=4000$

Therefore, Jason invested $4000 in fund 'b'.